FTC Sends More Than $2.6 Million to Consumers Harmed by FloatMe’s Deceptive and Discriminatory Lending Practices

The Federal Trade Commission is sending more than $2.6 million in refunds to consumers harmed by online cash advance provider FloatMe. The company deceived consumers with false promises of “free money” and discriminated against some consumers who applied for cash advances.

The FTC first took action against FloatMe in January 2024, alleging that the company and its co-founders used empty promises of quick and free cash advances to entice consumers to join its service. According to the FTC, the company then failed to deliver the promised advance amounts, charged fees to get the cash quickly, made it difficult for consumers to cancel their subscription, and discriminated against consumers who received public assistance. The FTC’s complaint also alleged the company made baseless claims that cash advance limits would be increased by an algorithm or another automated system.

Image

 The FTC plans to send PayPal payments on September 23, 2024, to 449,344 FloatMe members who paid for instant cash advances. Consumers who are eligible for a payment will get an email between now and September 20. Recipients should redeem their PayPal payment within 30 days.

Consumers who have questions about their payment should contact the refund administrator, Rust Consulting, Inc., at 833-637-4344, or visit the FTC website to view frequently asked questions about the refund process. The Commission never requires people to pay money or provide account information to get a refund.

The Commission’s interactive dashboards for refund data provide a state-by-state breakdown of refunds in FTC cases. In 2023, FTC actions led to $324 million in refunds to consumers across the country.