What are the red flags that Brigit is a loan shark or not?

Let me be very clear. Brigit is not a traditional loan shark. They will not send intimidating men to your door. They will not call your mother at 2 AM. But the company has engaged in practices that regulators consider deceptive.

Let me walk through the red flags that financial regulators have identified.

Red Flag #1: Deceptive Marketing About "Instant" Cash

What the FTC found: Brigit promised "instant" cash advances but did not deliver as advertised .

What this means for you: If a company makes promises it cannot keep, that is a red flag. Before you rely on "instant" cash, test it with a small amount first.

Your decision: Ask other users about their actual experience. How long did the transfer really take?

Red Flag #2: A Mandatory Subscription Fee That Functions as Interest

What the FTC found: Brigit charges a $9.99 monthly membership required to access cash advances. The FTC determined this fee functioned as a finance charge .

What this means for you: The marketing says "no interest." But that $9.99 monthly fee is effectively interest. For a small advance repaid quickly, the APR can exceed 200%.

How to calculate the real APR:

• You pay $9.99 per month
• You borrow $100
• You repay in 7 days
• The $9.99 represents about 10% of what you borrowed
• Over a year, that annualizes to over 500%

Your decision: If you borrow larger amounts ($250) and repay quickly, the fee is a smaller percentage. If you borrow smaller amounts or keep the subscription longer, the effective APR becomes astronomical.

Red Flag #3: Blocking Cancellation Attempts

What the FTC found: Brigit used tactics that prevented customers from cancelling their monthly memberships .

What this means for you: This is a major red flag for any subscription service. If a company makes it hard to cancel, assume they are trying to charge you forever.

Your decision: Before you sign up, find the cancellation button. If it is hidden or requires a phone call during limited hours, reconsider.

Red Flag #4: Subscription Model Can Mask True Borrowing Costs

The broader pattern: Many fintech apps (including Brigit, EarnIn, and others) use subscription fees instead of disclosed interest rates to avoid Truth in Lending Act requirements .

What this means for you: Under federal law, lenders must disclose APRs so consumers can compare costs. When a company calls a charge a "membership fee" instead of interest, it may sidestep those requirements entirely.

Your decision: Ask yourself: Am I paying this fee primarily to borrow money? If yes, that fee is effectively interest regardless of what the company calls it .

Red Flag #5: The True Cost Is Not Immediately Obvious

What the FTC found: The $9.99 monthly fee was not clearly disclosed as a cost of borrowing .

What this means for you: If a company buries costs in the fine print, treat that as a warning sign.

Your decision: Read the entire pricing page before you sign up. If anything is unclear, ask customer support. If they cannot explain it simply, do not sign up.

Red Flag #6: Class Action Pattern in the Fintech Industry

Important context: While there is no verified class action against Brigit specifically, multiple finance apps have faced class actions and federal enforcement for disguising effective APRs inside subscription fees .

Examples: EarnIn faces a class action alleging its optional fees translate to APRs averaging 284% . The pattern is real.

Your decision: Understand that the entire "earned wage access" industry is under regulatory scrutiny. This does not make Brigit illegal, but it does mean you should be cautious.