Frank, the college loan start-up JPMorgan is suing for fraud, was warned by the FTC for misleading students about Covid relief money
of inventing millions of fake customers to boost its value.
Frank was misleading students about how much financial aid was available under the March 2020 CARES Act, which had allocated about $7 billion for emergency grant aid to students due to the coronavirus pandemic, and how easy it was to access it, Whistle wrote. The company promised students help accessing the grant money, but all Frank was doing was generating a form letter students could send to university administrators.
But the reality was that a close read of Frank's terms revealed students would need to pay back the advances within two months, the FTC wrote.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
JPMorgan shuts down financial planning website Frank after suing founderJPMorgan Chase & Co on Thursday shut down its Frank website, a college financial planning platform it bought in 2021, after suing the startup's founder and another executive for creating nearly 4 million fake customer accounts.
Leer más »
JPMorgan CEO Jamie Dimon calls Frank acquisition a 'huge mistake'JPMorgan CEO Jamie Dimon called the bank's acquisition of fintech Frank a 'huge mistake' after being grilled about it on an earnings call
Leer más »
The FTC's proposed noncompete ban would change M&AThink you have key employees locked up for the next few years? Think again.
Leer más »
FTC noncompete clause ban: How employers should respond - Jacksonville Business JournalIt's time to take a hard look at noncompete, non-solicitation and non-disclosure agreements, experts say.
Leer más »
FTC noncompete agreements ban could make opportunities for entrepreneursInsider tells the global tech, finance, markets, media, healthcare, and strategy stories you want to know.
Leer más »
JPMorgan sues fintech founder for fraudJPMorgan Chase has sued the founder of a student financial aid platform that it purchased in 2021 for $175 million, claiming she falsified over 90% of the 4.25 million students she claimed had opened accounts.
Leer más »