FloatMe claimed to rescue consumers struggling to keep their heads above water, but left many without a lifeline
FloatMe claimed to rescue consumers struggling to keep their heads above water, but left many without a lifeline For consumers already underwater financially and desperate for just $50, cash advance company FloatMe’s services turned out to be more sink than swim.
FloatMe claimed to rescue consumers struggling to keep their heads above water, but left many without a lifeline
- For consumers already underwater financially and desperate for just $50, cash advance company FloatMe’s services turned out to be more sink than swim.
- In addition to $3 million in consumer redress and provisions that will change how FloatMe does business in the future, the settlement includes a provision specifically prohibiting deceptive claims about the use of artificial intelligence, algorithms, or machine learning.
- FloatMe advertises that consumers can “get up to $50 instantly,” suggesting that the company targeted people struggling to make ends meet.
- But consumers who tried to get $50 rarely got even that much from FloatMe.
- What they did get was a raft of undisclosed fees and hassles when they tried to cancel.
- Otherwise they had to wait three days – a catch the FTC says FloatMe didn’t clearly disclose up front.
- In other instances, the FTC says FloatMe simply ignored cancellation requests and continued to help themselves to consumers’ bank accounts.
- In addition, the complaint alleges the defendants violated the Equal Credit Opportunity Act by disqualifying people whose income came from public assistance programs.
- In addition to the $3 million financial remedy, the order requires the company to implement a fair lending program similar in form to other FTC actions alleging ECOA violations.
- The action against FloatMe includes compliance lessons for businesses offering similar services, but the advice extends beyond that industry.
- Like any other objective claim, a statement about your company’s use of AI or algorithms requires appropriate substantiation.