It was reported by the Federal Trade Commission that they have halted the operations of Blue Global Media after the company earned millions of dollars by falsely promising to match active users with low-rate loans.
The settlement with the FTC was announced today, and Blue Global faces a judgment of $104 million. This payment is suspended due to the company’s, and its CEO’s, Christopher Kay, inability to pay up. Instead, both Blue Global and Kay filed for Chapter 7 bankruptcy, listing the FTC as a creditor.
Venture Beat reports that “the FTC’s complaint alleged that, starting in 2009, Blue Global set up sites such as cashmojo.com, clickloans.net, and 100dayloans.com, which promised to connect consumers with more than 100 “trusted lending partners” and find the one offering them the best loan terms. Of the more than 15 million loan applications received, only 2 percent were sold to lenders, with the rest sold to non-lenders.”
These applications often included sensitive information (personal and financial) such as Social Security numbers, birthdays, personal incomes, and bank account numbers. The complaint alleges that complete applications were sold, without any consent from the consumer, “to any potential buyer without conditions and with little regard to how it would be used.” The complaint further addressed the lack of action on the company’s behalf after applicants filed formal complaints.Blue Global’s website is now dead, while the sites mentioned in the FTC’s complaint all redirect to the FTC’s own website.
Blue Global’s website has been shut down, and all of the sites mentioned in the complaint redirect to the FTC.Gov.
In a 2015 press release touting Blue Global Media and its growth, Kay said, “Our platform provides the borrower with the best chance in obtaining a loan because we employ the most advanced loan matching algorithm and the largest lender network available in the industry.” According to Kay’s LinkedIn profile, he has a marketing degree from the University of Phoenix and was Blue Global’s CEO until January. The LinkedIn page describes Blue Global as:
“… the World’s Leading Online Loan Marketplace. Every month our Premium Online Brands connect millions of Consumers and Businesses to quality credit providers. We match more businesses and consumers with financial products than anybody else. No one else can compete with our extensive reach or advanced loan matching algorithm, we simply are: ‘The World’s Online Loan Marketplace.'”
If you, or anybody you know has been caught up in this scam, or one like it, please contact us immediately!