WASHINGTON—Two fintechs that made “false promises” related to small businesses and the Paycheck Protection Program (PPP) have been hit with more than $50 million in combined fines by the FTC.
The two companies–Biz2Credit and Womply –not only misled companies looking to participate in the PPP, but also delayed and sometimes prevented them from obtaining funds they needed to keep their businesses afloat during the COVID-19 pandemic, according to the government.
The companies have agreed to settle the FTC’s charges against them: Biz2Credit will pay $33 million and Womply will pay $26 million to the FTC for small businesses harmed by their “deceptive” conduct. The FTC said the settlements represent the largest damages amounts ever secured by the agency under Section 19 of the FTC Act, and include money consumers lost because of the companies’ conduct, even if consumers made no payments directly to the companies.
‘Deceived Small Business’
“Biz2Credit and Womply deceived small business owners trying to secure loans at their time of greatest need,” said Samuel Levine, director of the FTC’s Bureau of Consumer Protection. “The FTC is committed to protecting small businesses from these sorts of unlawful practices.”
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