On September 1, 2022, the Federal Trade Commission (FTC) announced that it reached a settlement with a personal finance company to resolve allegations that it engaged in deceptive acts or practices in violation of Section 5(a) of the Federal Trade Commission Act (FTCA), 15 U.S.C. § 45(a).
According to the FTC, the personal finance company provides credit monitoring tools to consumers in exchange for consumers’ personal information, which the company, in turn, uses to market third-party offers for credit cards and other financial products. The complaint alleges that the company marketed third-party credit offers that contained false and misleading claims, including that consumers were “pre-approved” and had “90% odds” of approval. The FTC further alleged that, in fact, more than a third of marketed consumers did not qualify for the credit offers and wasted significant time applying.
The consent order requires the company to pay $3 million towards consumer relief. The company must also engage in compliance monitoring. As part of the settlement, the company neither admits nor denies any of the allegations in the complaint.
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