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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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Tried to cancel a subscription but couldn't Report it.

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The purpose of this blog and its comments section is to inform readers about Federal Trade Commission activity, and share information to help them avoid, report, and recover from fraud, scams, and bad business practices. Your thoughts, ideas, and concerns are welcome, and we encourage comments. But keep in mind, this is a moderated blog. We review all comments before they are posted, and we won’t post comments that don’t comply with our commenting policy. We expect commenters to treat each other and the blog writers with respect.

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Evilladollyz
January 24, 2024

That's what they did to me

Renee
January 25, 2024

Did this to me, as well!

KMS
January 25, 2024

Just wondering how much money they functionally stole through these tactics. If they got more than the $3 million they agreed to pay, then they still profited from the crime. When the penalty is less than the profits, then it’s just a cost of doing business…

Brock W Curts
January 30, 2024

THOSE PEOPLE LISTED HAS NO MORALS. THEY DID IT TO ME AS WELL. HOW DO I JOIN IN THIS LAWSUIT?

palmer97309
February 13, 2024

The same thing has just happen to me ..

Vanessa Parlin
February 26, 2024

They did it to me too! How do I join this

Midcloud
February 26, 2024

They did the same to me!!!! How do I join this?!??

yvonne baker
February 27, 2024

Thank you 😊