FloatMe broke cash advance promises

FloatMe ads promised cash advances of up to $50 and offered instant deposits of “free money” after you downloaded the app and subscribed to a monthly plan. What didn’t the ads say? That FloatMe would illegally turn people down when they asked for money and charge customers subscription fees without their consent. That’s deceptive, according to the FTC’s lawsuit against FloatMe and its cofounders.

According to the FTC, FloatMe used tricks to keep people paying for subscriptions. When people complained because they didn’t get the money they expected, staff lied and said cash advances would go up if they kept subscribing. When people tried to cancel unwanted subscriptions, FloatMe required a complicated, tricky process designed to keep them paying. The FTC also says the business denied cash advances to tens of thousands of people whose income was Social Security or other government benefits, and that’s illegal. To settle the case, FloatMe and its cofounders agreed to pay $3 million and change how they do business.

If you need to borrow money, consider all other options before you take a cash advance. And know you have legal protections. For example, when creditors make decisions about credit, they can’t consider your race, national origin, age, or whether part or all of your income comes from public assistance. Learn what to do if you suspect credit discrimination.

The law says businesses have to give you a simple way to cancel a paid subscription that’s automatically billed. If you think a business isn’t following the law, please tell the FTC at ReportFraud.ftc.gov.

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