Jeff Kauflin is a senior editor who leads Forbes’ fintech coverage, covering everything from digital banking and investing to payments and insurtech. He co-edits Forbes’ annual Fintech 50 and also writes about crypto. Jeff joined Forbes in 2016 and works in New Jersey.
Startups like TomoCredit and Albert , last valued at hundreds of millions of dollars, are the target of hundreds of consumer complaints.55-year-old Michigan resident Felisa Ware was hoping to improve her credit so she could buy a bigger house where her ailing mother could live with her. She signed up for a subscription service from TomoCredit.
Tomo CEO Kim says her customer service team had “good intentions” and aimed to understand why customers were dissatisfied. “Many of our customers are financially uneducated, unfortunately,” Kim says, adding that her support team tried “to make sure at least got the basic benefit that we offer.” After we asked her pointed questions about Felisa Ware’s case and the absence of an online option to cancel, Tomo updated its app on October 9 to include a “Cancel Membership” button.
to its customers. The FTC alleged that Brigit used deceptive practices in offering cash advances and made it too hard to cancel subscriptions. In a statement at the time, Brigit said the claims were “factually inaccurate” but that it decided to settle with the FTC to “put this matter behind us.” A Brigit spokesperson toldthat over a year ago, the company improved its cancellation process to make it faster and simpler, so that it can be completed online in two steps.
In the summer of 2023, she pivoted the business, essentially pausing the credit card and introducing a subscription service for improving people’s credit scores, called Tomo Boost. Kim says the fast adoption of Tomo’s subscriptions propelled the startup to become profitable late last year on a generally accepted accounting principles basis.
Difficulty canceling isn't the only issue unhappy Tomo customers have raised. In its online description of its top-tier VIP plan, the first bullet says Tomo offers “up to $30,000 credit line.” But in consumer complaints, many Tomo users say the credit line never appeared on their credit history.. Rocket Money has considered offering a credit-boosting service but has so far opted against it, says cofounder and chief revenue officer Yahya Mokhtarzada.
Tomocredit Subscriptions BBB CFPB Albert Rocket Money Cancel A Subscription Fintech Complaints Fintech Subscriptions
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