https://finledger.com/2021/03/29/ftc-to-close-down-mobile-banking-app-beam-pending-district-court-judge-approval/

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FTC to close down mobile banking app Beam, pending District Court
Judge approval

Beam must refund about $2.6 million in customer deposits and
interest, according to CNBC

March 29, 2021, 3:26 pm By Rebecca Ayers
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Beam is banned from operating a mobile banking app or "any other
product or service that can be used to deposit, store, or withdraw
funds," as part of a settlement with the Federal Trade Commission,
according to a press release. The agreement still needs to be
approved by a district court judge in San Francisco, according to
CNBC.

CNBC reports that Beam must refund about $2.6 million in customer
deposits and interest. The tentative settlement bars Beam founder and
CEO Yinan Du, also known as Aaron Du, from operating a similar
business going forward. Beam and Du don't admit wrongdoing under the
settlement, says CNBC.

The FTC first announced in November 2020 a complaint alleging that
Beam and its founder Du promised that customers of the free mobile
banking app could make transfers out of accounts and users would
obtain their requested funds within three to five business days.
However, the FTC alleged that some customers waited weeks or months
to get their money.

The FTC also alleged that Beam wasn't able to give users the high
interest rates it said it would give.

"People taking a financial hit from the pandemic may need 24/7 access
to their savings, which is exactly what Beam Financial promised and
didn't deliver," Daniel Kaufman, Acting Director of the FTC's Bureau
of Consumer Protection, said in a statement. "The message here is
simple for mobile banking apps and similar services: Don't lie about
your customers' ability to get their money when they need it."

The FTC had no further comment to provide, a spokesperson told
FinLedger in an email. Beam could not be reached immediately for
comment.

In other recent banktech and wealthtech news, SoFi will offer its
users the ability to invest in IPOs for companies going public, the
digital lender announced on Friday. Typically, these opportunities
are reserved for institutional investors. SoFi expects to offer a
couple of IPO securities in the months ahead that will be available
for its "SoFi Invest members through the SoFi app."

Latest Articles

FTC to close down mobile banking app Beam, pending District Court
Judge approval
Mar 29, 2021 By Rebecca Ayers

Beam is banned from operating a mobile banking app or "any other
product or service that can be used to deposit, store, or withdraw
funds," as part of a settlement with the FTC, according to a news
release. The agreement still needs to be approved by a district court
judge in San Francisco, according to CNBC.

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