FTC Reaches $3M Settlement With FloatMe Mobile App and Its Co-Founders

The personal finance mobile app, FloatMe, and co-founders Joshua Sanchez and Ryan Cleary agreed to pay the FTC $3 million to settle allegations that they promise consumers short-term cash advances if they enroll in a $1.99 monthly membership plan, but then they fail to deliver on those promises (see 2401020026), said their stipulated order Monday (docket 5:24-cv-00001) in U.S. District Court for Western Texas in San Antonio. FloatMe, Sanchez and Cleary also agreed to a permanent injunction barring further misconduct, said the stipulation. The injunction prohibits the company from “misrepresenting, expressly or by implication,” the amount of funds that will be available to a consumer and when those funds will be available, it said. The defendants "neither admit nor deny any of the allegations” in the FTC’s Jan. 2 complaint, said the stipulated order.