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Just days after the federal government shutdown came to an end, the Federal Trade Commission (FTC) wasted no time returning to enforcement mode, announcing a major settlement with Seek Capital, LLC and its CEO, Roy Ferman. The agency's action permanently bans the company and its founder from offering business financing, debt relief, or credit repair services, serving as an aggressive post-shutdown reminder that the FTC's focus on deceptive small-business lending practices remains undiminished.
FTC Targets Deceptive Small Business Lending Practices
According to the FTC's complaint, filed in November 2024, Seek advertised itself as a source of quick and easy business loans for new and aspiring small businesses, promising "lines of credit" and "cold hard cash." Both Seek telemarketers and lead generators regularly marketed to small business owners the message that thousands of dollars were easily available and could be pre-approved in minutes.
But according to the FTC, what many business owners actually received were thousands of dollars in fees to open credit cards in their names, without the business owner's knowledge or approval. The complaint alleges that the cards often lacked the interest-free period promised by Seek's telemarketers, and that many business owners discovered the cards only after seeing a drop in their credit scores or receiving unexpected invoices.
The telemarketers reportedly used persistent, high-pressure tactics that business owners described as harassment. The FTC alleged that the deceptive fees and fraudulent scheme cost small business owners more than $37 million.
In addition, Seek allegedly distorted its online review profile by requiring customers to leave 5-star reviews before Seek would perform contracted services and prohibiting negative reviews via contract terms, conduct the FTC says is a clear violation of the Consumer Review Fairness Act. Seek also had internal employees post positive reviews, while advertising Seek's reviews as being truthful reviews by actual customers, conduct the FTC says violates Section 5(a) of the FTC Act.
Inside the $48 Million FTC Settlement with Seek Capital
The final order against Seek and Ferman imposes a monetary judgment of $48 million, though most of it has been suspended because of an alleged inability to pay the full amount. More importantly, the order permanently bans all defendants, including Ferman, from multiple industries. Defendants are permanently banned from marketing, promoting, or offering business financing, loans, lines of credit, debt relief, or credit repair services. The order also prohibits misrepresentations regarding affiliations, upfront fees, and credit score risk, and prohibits defendants from billing consumers without documented express consent.
Compliance Lessons for Businesses After the FTC's Seek Capital Crackdown
The Seek Capital order serves as an important reminder that even after a weeks-long government shutdown, the FTC is fully back in action and is not easing its enforcement priorities. The agency's quick return to the field underscores that telemarketing abuses, lead generators, deceptive lending practices, and consumer review manipulation remain squarely in its sights.
For companies operating in these spaces, now is the time to double-check that their marketing claims are accurate, their disclosures are clear, and their consumer feedback mechanisms comply with federal law.
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