FTC-PR-241115-1 (11-15-24) (FTC-PR-2411)
FTC Takes Action Against Bogus Business Finance Scheme Seek Capital For Costing Small Business Owners Millions – FTC says Seek advertises ‘business loans’ but charges companies thousands to open credit cards instead
Excerpt: The Federal Trade Commission is taking action against Seek Capital (PDF 29-pages) and its founder and CEO, Roy Ferman, for operating a bogus business finance scheme that cost small business owners more than $37 million.
According to a complaint filed by the FTC, the company has targeted new and aspiring small business owners looking for loans or lines of credit to open or grow their businesses. While the company’s advertising implies that business owners would have access to cash, instead Seek charges clients thousands of dollars simply to open credit cards in the owners’ names.
“Starting or growing a small business is no easy task and it is made harder by those who deceive small business owners with false promises of liquid capital,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “The FTC will ensure that all consumers looking for financial products and services, including small business owners, are protected from those who break the law.”
Business owners find Seek when they are looking online for sources of funding to make payroll, buy vehicles and other ongoing expenses involved in keeping a business up and running. According to the complaint, Seek’s ads call the company “the market leader in business loans for small businesses” and the company’s website advertises the “Best Startup Business Loans of 2024.”
The complaint points to numerous other ads and marketing materials from Seek and its lead generators that tout the easy availability of tens of thousands of dollars in “business loans” and “business lines of credit,” with promises that business owners who apply can be pre-approved in minutes.
Categories: Deceptive Advertising – Deceptive Business Practices
FTC-PR-241115-1 (11-15-24)