The Federal Trade Commission (FTC) is sending more than $17 million in refunds to consumers who were harmed by Brigit (also known as Bridge It, Inc.), an online cash advance provider that the agency says misled customers with false promises of “instant” cash advances and locked them into difficult-to-cancel membership subscriptions.
“Brigit trapped those consumers least able to afford it into monthly membership plans they struggled to escape from,” said Sam Levine, Director of the FTC’s Bureau of Consumer Protection. “Companies that offer cash advances and other alternative financial products have to play by the same rules as other businesses or face potential action by the FTC.”
In 2023, the FTC took action against Brigit, alleging that the company falsely advertised access to “instant” cash advances of up to $250, promising consumers they could get the money “whenever you need it” and cancel at any time. However, the FTC’s investigation revealed that Brigit’s claims were misleading and that many consumers were unable to receive the promised funds. In some cases, consumers could not obtain any cash advance at all.
The FTC’s complaint also charged that Brigit imposed hidden fees, including a 99-cent fee for “instant” transfers, which were contrary to its advertised offer of “free” transfers. Consumers who chose not to pay the fee had to wait up to three business days for their advances. Additionally, Brigit’s practices led to recurring monthly charges of $9.99, even for consumers who had already received a cash advance. This created further financial strain for those already struggling.
Brigit also used manipulative “dark patterns”—design tricks that made it difficult for consumers to cancel their subscriptions. Instead of offering an easy, straightforward way to cancel, the company created a confusing process that violated the Restore Online Shoppers’ Confidence Act (ROSCA), which mandates that businesses provide a simple method for canceling subscriptions.
As part of the settlement, the FTC will refund a total of $17.7 million to 1,818,930 consumers who paid for Brigit’s services. Eligible consumers will receive an email notification about their refund between now and November 15, 2024. PayPal payments will begin being sent on November 18, and recipients will have 30 days to redeem their refunds.
