Womply and CEO Scammell Agreed to Pay $26 Million to Settle FTC Charges
March 26, 2024
Delaney Sexton
Contributing Editor
Womply and CEO Scammell Agreed to Pay $26 Million to Settle FTC Charges
The Federal Trade Commission alleged that Womply advertised that small businesses could successfully obtain PPP funding by applying to Womply. In reality, more than 60% of Womply’s PPP applications never resulted in funding.
Womply and Scammell advertised that good customer service and automated processes would help small businesses secure PPP loans quickly. They used product names like “PPP Fast Lane” and made claims that applications would be prepared “faster than a bank.”
The FTC says that applicants regularly experienced issues and delays with their PPP applications, sometimes fully hindering the applications. When they sought customer service, they were often unable to receive assistance. The complaint states that after one month and more than 4,800 support requests from applicants, Womply deactivated its phone-based customer service.
Source:
FTC Press Release