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The company, also known as Bridge It, Inc., has agreed to end tactics that prevented customers from canceling the monthly memberships and to stop deceptive marketing practices, the regulator said in Thursday’s announcement.
In a statement, Brigit disputed the allegations. “The FTC’s claims are factually inaccurate, misunderstand our business, and go against everything we have worked so hard to build on behalf of our customers. … Nevertheless, we have decided to settle this case with the FTC, because it is in the best interest of our customers and employees to put this matter behind us.
According to its website, Brigit has more than 4 million users and offers a range of services, including credit building, identity theft protection and expenditure tracking. It is among a host of personal finance apps with cash advance features.
The FTC’s action comes at a time when many Americans are being squeezed by inflation. Consumer prices rose 3.7 percent in September, driven mostly by housing and fuel costs. Consumers are also holding significant credit card debt, topping $1 trillion in the second quarter of 2023.
That’s left many consumers turning to payday loans or other types of cash advances to shore up their finances. According to Bankrate.com, an estimated 12 million Americans take out payday loans each year.
The FTC’s proposed settlement order requires court approval before the refund process can begin.
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