Court filing
FTC Warning Letter to Taycor Financial — Misleading Small Businesses About CARES Act PPP Assistance (June 22, 2020)
Record facts
| Court | Federal Trade Commission |
|---|---|
| Filed | 2020-06-22 |
Summary
A warning letter dated June 22, 2020 from the Federal Trade Commission and the U.S. Small Business Administration to the chief executive officer of TF Group, Inc., d/b/a Taycor Financial, headed Misleading Small Businesses About Emergency Assistance in the Coronavirus Aid, Relief, and Economic Security Act. The letter advises that the company or its lead generators may be unlawfully misleading small business consumers about federal loans or other relief in violation of the Federal Trade Commission Act, 15 U.S.C. § 45. It states that FTC staff reviewed the company's advertising as recently as June 16, 2020 and lists claims found there, including use of the SBA logo, an invitation to apply quickly for PPP loans, and representations about completing an application in under 15 minutes and funds within 48 hours of approval. The letter asks the company to respond within 48 hours.
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Cited in: Eric S. Benderson
Full text
June 22, 2020 Via Electronic Mail Michael Hong, CEO TF Group, Inc., d/b/a Taycor Financial 222 N. Pacific Coast Hwy. #675 El Segundo, CA 90245 mhong@taycor.com Re: Misleading Small Businesses About Emergency Assistance in the Coronavirus Aid, Relief, and Economic Security Act WARNING LETTER Dear Mr. Hong, This letter is to advise you that TF Group, Inc., d/b/a Taycor Financial (“Taycor”) or its lead generators may be unlawfully misleading small business consumers about federal loans or other temporary small business relief in violation of the Federal Trade Commission (“FTC Act”). 15 U.S.C. § 45. The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) is intended to provide emergency relief to individuals, families, and businesses under severe financial strain amid the novel coronavirus outbreak (COVID-19). The Act offers vital assistance to small businesses struggling to keep their workforces employed, by creating a new Section 7(a) loan program: the Paycheck Protection Program (“PPP”). Small businesses may apply for PPP loans through U.S. Small Business Administration (“SBA”)-authorized lenders or other lenders SBA has determined to be eligible. FTC staff has reviewed advertising and marketing by, or on behalf of, Taycor, including the website disasterloanassistance.com, as recently as June 16, 2020. These materials have included the following claims: • Using the official logo of the SBA, disasterloanassistance.com claims it offers consumers “The Fastest & Easiest Way to Apply for PPP!”; • On this same screen, disasterloanassistance.com purports to offer “COVID-19 SBA Loan Programs” and invites consumers to “Quick Apply” by submitting their business and financial information; and • Below this screen and immediately below additional information about the PPP loan application process, that consumers who “QUICK APPLY NOW” can “Complete an application in under 15 minutes” and “GET FUNDED FAST!”— that “Funds are available within 48 hours of approval.” These and other claims suggest, among other things, an affiliation or relationship with the SBA or approved PPP lenders, or that consumers can get PPP or other SBA loans by applying on your site. To the extent that any of these claims are not truthful, omit material information needed to prevent the claims from misleading consumers, or are not substantiated, they would violate Section 5 of the FTC Act, 15 U.S.C. § 45, which prohibits “unfair or deceptive acts or practices in or affecting commerce.” Under Section 5, it is unlawful to make representations that are likely to deceive consumers, including small businesses. This includes express or implied representations, whether made directly or indirectly. Taycor should take immediate action, including by reviewing and monitoring all marketing used by, or on behalf of, Taycor in any form (including websites, social media, emails, telemarketing, and text messages), to ensure all deceptive claims are removed. Taycor also should act immediately to remediate any harm to small business consumers stemming from such claims. This letter is not meant to contain an exhaustive list of possible violations related to your products or operations. Please notify us within 48 hours of the support Taycor has for the types of claims described above and specific actions Taycor has taken to address the FTC’s concerns by emailing COVID19ResponseDFP@ftc.gov. FTC investigators have copied and preserved the relevant website and marketing materials and will continue monitoring your representations to evaluate whether further action is appropriate in connection with your activity. If you have any questions regarding compliance with the FTC Act, please contact us at COVID19ResponseDFP@ftc.gov. Sincerely, Malini Mithal Associate Director, Division of Financial Practices Federal Trade Commission Eric S. Benderson Associate General Counsel for Litigation U.S. Small Business Administration MALINI MITHAL Digitally signed by MALINI MITHAL Date: 2020.06.22 10:05:05 -04'00' ERIC BENDERSON Digitally signed by ERIC BENDERSON Date: 2020.06.22 13:53:40 -04'00'
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- 2020-06-taycor-financial.pdf
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- 204,430 bytes
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- c25d24a1a5ef040cb77a11030c061509be5a77545f33f53ddfb8e1da158cff53
- Our copy
- 2020-06-taycor-financial.pdf
- Original
- www.ftc.gov