FTC’s Lawsuit Against Seek Capital Alleges Consumers Would Be Wise to Seek Capital Elsewhere

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  • The FTC has filed a lawsuit against Seek Capital, LLC and its founder (collectively “Seek”) alleging deceptive practices in violation of multiple federal consumer protection laws.
  • The FTC’s complaint alleges that Seek markets its services to new and aspiring small business owners, claiming it can secure business loans or lines of credit without charging upfront fees. Instead, Seek allegedly applies for multiple credit cards on behalf of these business owners and charges a fee equal to 10% of the total credit limit obtained—amounts that can reach thousands of dollars. The complaint further claims that Seek uses high-pressure telemarketing tactics, submits credit card applications without the consumers’ knowledge or approval, and imposes significant early termination fees on consumers who attempt to cancel their agreements.
  • Seek is also accused of distorting its online ratings by pressuring consumers to leave five-star reviews before receiving any funding, deleting negative reviews, encouraging employees to post positive reviews, and using unlawful contract terms to prevent consumers from posting negative feedback.
  • The lawsuit seeks a permanent injunction, as well as temporary and preliminary relief to prevent consumer harm during the case, along with monetary compensation and any additional remedies deemed appropriate by the court.
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