Federal Trade Commission targets cash-advance company FloatMe over allegedly deceiving consumers

San Antonio cash-advance company FloatMe Corp. has engaged in deceptive acts to lure in customers, charge them without their consent and thwart those who try to cancel their membership, federal authorities allege in a lawsuit filed Tuesday. The Federal Trade Commission sued FloatMe and its co-founders, Joshua Sanchez and Ryan Cleary, over alleged “unlawful” business practices. It wants a federal court in San Antonio to issue a permanent injunction against future violations and order the defendants to pay $3 million. The fintech company didn’t respond to a phone call and email seeking comment Thursday. The company has yet to file an answer to the lawsuit.

Through an app, FloatMe provides customers with cash advances on their wages — not loans. It has operated by charging a $1.99 monthly membership fee, which allows customers to request small advances — of no more than $50 — that they repay when their upcoming paychecks hit their bank account. FloatMe’s website shows the monthly membership fee has recently increased to $3.99. It also says the FloatMe app has been downloaded more than 2 million times. Many workers seeking cash advances are in a financial bind and need money quickly. To create an account, customers authorize FloatMe to access their bank account balance and transaction histories.