The Federal Trade Commission on Wednesday sued Beam Financial in San Francisco federal court accusing the company of misleading users of its mobile banking app about interest rates and the availability of their funds.
The FTC alleges the San Francisco-based startup and its founder Aaron Du engaged in deceptive practices by promising users guaranteed base interest rates and “24/7” access to their funds. Instead, the company failed to fulfill withdrawal requests on time, or in some cases at all, and only paid a fraction of the advertised interest, according to the complaint.
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