The Federal Trade Commission (FTC) is distributing more than $2.6 million in refunds to consumers affected by the deceptive practices of online cash advance provider FloatMe. The company had misled consumers with false promises of "free money" and discriminated against certain applicants for cash advances.

In January 2024, the FTC initiated action against FloatMe, accusing the company and its co-founders of enticing consumers with empty promises of quick and free cash advances. The FTC's allegations included failure to deliver promised advance amounts, charging fees for expedited cash, complicating subscription cancellations, and discriminating against recipients of public assistance. Additionally, the FTC claimed that FloatMe made unfounded assertions about increasing cash advance limits through an algorithm or automated system.

The FTC plans to send PayPal payments on September 23, 2024, to 449,344 FloatMe members who paid for instant cash advances. Eligible consumers will receive an email notification by September 20 and should redeem their PayPal payment within 30 days.

For questions regarding payments, consumers can contact Rust Consulting, Inc., the refund administrator, at 833-637-4344 or visit the FTC website for frequently asked questions about the refund process. The Commission emphasizes that it never requires individuals to pay money or provide account information to receive a refund.

The FTC’s interactive dashboards offer a state-by-state breakdown of refunds in various cases. In 2023 alone, FTC actions resulted in $324 million in refunds to consumers nationwide.

The Federal Trade Commission aims to promote competition while protecting and educating consumers. It assures that it will never demand money, make threats, instruct transfers of money, or promise prizes. More information on consumer topics can be found at consumer.ftc.gov. Fraud reports can be submitted at ReportFraud.ftc.gov. The public is encouraged to follow the FTC on social media and sign up for news alerts via their website.