The Federal Trade Commission (FTC) has taken significant action against Seek Capital and its CEO, Roy Ferman, by permanently banning them from offering business financing, debt relief, and credit repair services. This decision comes after allegations that the company misled entrepreneurs and small business owners seeking financial assistance.

In November 2024, the FTC filed a complaint against Seek Capital, claiming that the California-based firm targeted new and aspiring business owners with false promises of access to loans and credit lines. The company advertised its ability to leverage 'special relationships' with lenders to provide cash with no interest for extended periods. However, the reality was starkly different, as Seek Capital charged clients thousands of dollars merely to open credit cards, often without delivering the promised 0% interest terms, resulting in significant financial harm to business owners.

The FTC's investigation revealed that Seek Capital not only misrepresented its relationships with lenders but also failed to disclose substantial fees when consumers attempted to cancel services. The federal court granted the FTC's request for summary judgment, confirming that Seek Capital's actions violated the Federal Trade Commission Act and the Telemarketing Sales Rule.

As part of the final order, Seek Capital and Ferman are subject to a monetary judgment of $48,280,328, which is partially suspended due to their inability to pay the full amount. The order also imposes a permanent ban on their marketing and promotion of credit and financing services, as well as any misrepresentations regarding their business practices.

The FTC's Director of the Bureau of Consumer Protection, Christopher Mufarrige, emphasized the agency's commitment to protecting small businesses from deceptive practices, stating that companies should be aware of the consequences of unlawful conduct.