The Federal Trade Commission (FTC) has announced that personal finance app Brigit has agreed to pay $18 million to settle allegations of misleading consumers and locking them into expensive monthly memberships. According to the FTC, Brigit advertised instant cash advances and no late fees or interest charges, but few customers actually qualified for these benefits and were instead charged 99 cents per transaction. Additionally, the app made it difficult for customers to cancel their memberships. Brigit, also known as Bridge It, Inc., has agreed to end these practices and deceptive marketing.
Despite disputing the allegations, Brigit has decided to settle the case with the FTC in the best interest of its customers and employees. Brigit offers various services, including credit building and identity theft protection, to its over 4 million users. This settlement comes at a time when many Americans are facing financial pressure due to inflation and high levels of credit card debt. This has led consumers to turn to payday loans and cash advances, with an estimated 12 million Americans taking out payday loans each year. The proposed settlement order will be subject to court approval before refunds can be issued.
In conclusion, Brigit, a personal finance app, has agreed to pay $18 million to the FTC to resolve allegations of deceptive practices. The app misled customers with promises of instant cash advances and locked them into expensive monthly memberships that were difficult to cancel. Despite disputes from Brigit, the company has decided to settle the case in the best interest of its customers and employees. This settlement comes at a time when many Americans are facing financial difficulties, leading them to rely on payday loans and cash advances. The proposed settlement order will need court approval before refunds can be distributed.
