FTC Takes Action Against Misleading Loan Lead Generation Operation
Earlier this month, the Federal Trade Commission (“FTC”) announced a settlement with a lead generation company that unlawfully shared and sold consumers' sensitive data. Blue Global Media, LLC and its CEO Christopher Kay have agreed to settle charges brought by the FTC, which accused the company of deceiving consumers into filling out loan applications and then selling those applications, along with sensitive personal information, to various buyers.
According to the FTC's complaint, Blue Global Media operated multiple websites, including 100dayloans.com, 1hour-advance.com, cashmojo.com, and clickloans.net. These sites offered loan services to consumers looking for payday and auto loans, promising to connect them with the best lender from a network of over 100 options. However, the FTC alleged that the company:
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Sold very few of the loan applications to actual lenders.
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Did not match applications based on loan rates or terms as promised.
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Sold the applications to the first buyer willing to pay, regardless of their intentions or security measures.
The company also claimed to safeguard consumers' sensitive information, such as Social Security and bank account numbers, by sharing it only with "trusted lending partners." The FTC found, however, that Blue Global Media provided complete loan application data to any potential buyer without adequate safeguards or consumer consent. Allegedly, this personal and financial data was shared and sold indiscriminately, leading to consumer complaints about misuse that went unaddressed by the company.
As part of the settlement, Blue Global Media and Christopher Kay are prohibited from misleading consumers about their ability to secure favorable loan terms or protect personal information. They must also verify the identity of businesses receiving consumers' sensitive information and obtain explicit consent before sharing such data.
The settlement includes a judgment totaling over $104 million, representing the revenue generated by selling consumers' loan applications. This judgment is partially suspended due to the defendants' financial inability to pay.
The FTC said that this case underscores the FTC's commitment to protecting consumers from deceptive practices in the loan industry.
If you would like to read more about this case and others, visit our Case Studies Library.
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