Womply

Sixty percent that never got funded

Womply advertised widely that small businesses, particularly one-person businesses like gig workers, could successfully obtain Paycheck Protection Program funding by applying through it.

According to the FTC’s complaint, more than 60 percent of Womply applications never resulted in funding. Millions of consumers began applications through the company, and many who were eligible never received money because Womply and its chief executive Toby Scammell failed to fix known technical problems with their system or to provide the help they had promised.

The support that was switched off

The company promised its “helpful, friendly support agents” would assist applicants. After one month and more than 4,800 support requests, Womply completely deactivated its phone-based customer service.

Online chat replies often took hours or days. Some applicants went to the length of contacting employees of a third-party company that worked with Womply on their personal social media accounts, looking for an answer.

The speed claims

Marketing centred on how fast loans would be funded, with product names like “PPP Fast Lane” and promises that applications would be prepared within 24 hours and “faster than a bank.”

The complaint highlights one owner who was notified her loan had been funded but never received the money. After weeks of pleading with Womply for help, she had to close her business.

The order

A $26 million judgment for small businesses harmed. The FTC described this and a parallel $33 million settlement as the largest damages amounts it had ever secured under Section 19 of the FTC Act, and noted they include money consumers lost because of the conduct even where they made no payment directly to the companies. Womply and Scammell are barred from deceptive, false or unsubstantiated claims about financial services or products.

What is not established

The order is a settlement and resolves the allegations without any admission or finding of wrongdoing.