Refunds going to consumers who used FloatMe for online cash advance

The FTC charged that the company used empty promises of free cash advances but didn't deliver and tacked on extra fees and made it hard to cancel. (c) ConsumerAffairs

The FTC charged that the company used empty promises of free cash advances but didn't deliver

The Federal Trade Commission is sending more than $2.6 million in refunds to consumers who signed up for online cash advance provider FloatMe.

The FTC charged that the company deceived consumers with false promises of “free money” and discriminated against some consumers who applied for cash advances.

The company's website says new members "can get floats up to $50 at no cost and receive funds within 3 days." It says expedited service is available for a "small fee." 

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. 

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.

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