FTC Orders Brigit App to Pay Refunds to Customers It Defrauded
Brigit is a personal finance app designed for working people who live paycheck to paycheck. Its “Plus” subscription service promises customers that they can access cash advances of up to $250 anytime they choose. It turned out not to be so simple, and enough customers eventually complained that the FTC issued refunds to customers who suffered financial losses because of Brigit’s deceptive practices. A refund from Brigit is a start, but it is not enough to solve the predicament of living paycheck to paycheck. To get off the treadmill of borrowing every pay period and relying on expensive, even predatory, loans, contact a Miami debt lawyer.
A Predatory Lender in Your Pocket
Brigit is one of many earned income access apps that enable subscribers to access cash advances. This category of apps also includes DailyPay, Dave, Branch, and PayActiv. Critics have described these apps as payday lending for the age of smartphones. Like so many apps, Brigit starts out free and gradually convinces you that, to get the features you want, you must pay. The Plus subscription costs $9.99 per month, and it advertises that subscribers can borrow a $250 cash advance whenever they choose, and the funds will be available immediately.
The only problem is that, like the worst money-sucking apps, Brigit charges customers plenty of hidden fees. As with conventional payday lending, borrowing $250 from Brigit costs a lot more than it appears to cost. On the surface, borrowing $250 every month and paying it back with only the $9.99 subscription fee sounds like a sweet deal, but consumers ended up paying much more. To add insult to injury, the process of canceling the app was time-consuming and expensive. As of November 2024, the Federal Trade Commission (FTC) has sent refunds to more than 1.8 million customers, for a total of $17 million in refunds.
If You are Borrowing From Brigit, You Have Bigger Problems
A less expensive earned wage access app would be nice, but wouldn’t it be better if you did not need to borrow against your next paycheck at all? You haven’t splurged on anything for as long as you can remember, but you keep spending your entire paycheck on necessities and on the minimum payments on your debts, leaving you to take cash advances so that you can buy groceries.
Perhaps it is time to look at the big picture, so that you can make a dent in your debts, instead of just treading water. By meeting with a debt relief lawyer, you might be able to settle your debts for less than you owe without going through bankruptcy court. If this is not an option, a bankruptcy filing can help you discharge credit card debt and medical bills.
Work With a Debt Lawyer About Earned Wage Access Debt
A South Florida debt lawyer can help you discharge your debts so that you do not have to keep living paycheck to paycheck and borrowing from earned wage access apps. Contact Nowack & Olson, PLLC in Miami, Florida to discuss your case.
Sources:
ftc.gov/news-events/news/press-releases/2023/11/ftc-action-leads-18-million-refunds-brigit-consumers-harmed-deceptive-promises-about-cash-advances
ftc.gov/news-events/news/press-releases/2024/11/ftc-sends-more-17-million-consumers-harmed-brigits-deceptive-claims-junk-fees-confusing-cancellation
