WASHINGTON, D.C. — The Federal Trade Commission (FTC) has announced the distribution of over $2.6 million in refunds to individuals impacted by the misleading practices of FloatMe, an online cash advance provider. This enforcement action, initiated in January 2024, highlighted FloatMe’s false assurances of “free money” and its discriminatory practices against certain applicants.
The FTC’s investigation revealed that FloatMe lured consumers with promises of rapid, cost-free cash advances but subsequently imposed fees for expedited access and failed to fulfill the pledged amounts. Further allegations noted discriminatory practices against those receiving public assistance and unfounded claims regarding cash advance limits purportedly set by automated algorithms.
The refund process, set to begin today, September 23, 2024, will see payments sent via PayPal to 449,344 affected consumers. Eligible recipients will receive email notifications, with a redemption window set to close within 30 days.
This action highlights the FTC’s ongoing efforts to hold financial service providers accountable and ensure that consumers are shielded from deceptive business practices. The broader implications of this case serve as a cautionary tale for the burgeoning online cash advance industry, emphasizing the necessity for transparency and fairness in consumer dealings.
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