Pierce, N. v. Floatme Corp.

CourtSuperior Court of Pennsylvania
DecidedNovember 4, 2025
Docket1310 WDA 2024
StatusPublished

This text of Pierce, N. v. Floatme Corp. (Pierce, N. v. Floatme Corp.) is published on Counsel Stack Legal Research, covering Superior Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pierce, N. v. Floatme Corp., (Pa. Ct. App. 2025).

Opinion

J-A19008-25

2025 PS Super 247

NATALIE PIERCE, INDIVIDUALLY : IN THE SUPERIOR COURT OF AND ON BEHALF OF ALL OTHERS : PENNSYLVANIA SIMILARLY SITUATED : : : v. : : : FLOATME CORP. : No. 1310 WDA 2024

Appeal from the Order Entered September 23, 2024 In the Court of Common Pleas of Allegheny County Civil Division at No(s): GD-24-002169

BEFORE: BOWES, J., STABILE, J., and BENDER, P.J.E.

OPINION BY BENDER, P.J.E.: FILED: November 4, 2025

Appellant, FloatMe Corp. (“FloatMe”), appeals from the trial court’s order

overruling its preliminary objections to compel arbitration. We affirm.

After FloatMe had filed preliminary objections to the original complaint,

Appellee, Natalie Pierce, individually and on behalf of all others similarly

situated, filed an amended class action complaint against FloatMe on June 3,

2024. Therein, Ms. Pierce alleged, inter alia, the following: FloatMe is a

technology company that makes loans or advances to Pennsylvania

consumers over the internet. Amended Complaint, 6/3/24, at ¶¶ 10, 12. It

has a lending application (hereinafter, “app”) where consumers can obtain

advances of up to $50.00. See id. at ¶¶ 16-18. Users must pay a $3.99

monthly subscription fee to obtain any type of advance, and an express fee

that ranges from $3.00-$5.00 for an immediate advance. Id. at ¶¶ 25-27.

These fees are intended to compensate FloatMe for lending money. Id. at ¶ J-A19008-25

28. Nevertheless, FloatMe advertises its cash advance product as free credit

and no interest. Id. at ¶ 36. In actuality, a $20.00 cash advance, with a two-

week repayment schedule, a $5.00 express fee, and a $3.99 monthly fee

yields a 1,302.27% annual percentage rate (“APR”). See id. at ¶ 38; see

also id. at ¶ 39 (stating that a $30.00 cash advance with the same charges

yields an 868.18% APR); id. at ¶ 40 (stating that a $50.00 cash advance with

the same charges yields a 520.91% APR).

Users must connect a bank account and payment card to obtain an

advance and — before obtaining an advance — FloatMe analyzes users’ bank

account history with proprietary underwriting criteria, which ensures that they

have a recurring source of income directly deposited into their linked bank

account. See id. at ¶¶ 19-21. FloatMe also requires its users to authorize

FloatMe to automatically deduct its advances from the user’s bank account or

payment card immediately after the user’s employer deposits a paycheck into

the user’s account on payday. Id. at ¶ 30. Via FloatMe’s underwriting criteria,

FloatMe’s obligation that borrowers link their accounts and payment cards to

FloatMe’s app, and FloatMe’s requirement that users authorize FloatMe to

deduct its cash advances and fees from bank accounts on payday, FloatMe

obtains repayment on the vast majority of advances it issues. Id. at ¶ 33.

Ms. Pierce obtained cash advances from FloatMe, and paid FloatMe’s

express and monthly fees. Id. at ¶¶ 82-83. She did not know that she was

paying interest by paying fees, and that the amounts she paid yielded triple-

and quadruple-digit APRs. Id. at ¶¶ 82-86. She brought this action

-2- J-A19008-25

individually and on behalf of all persons who reside in Allegheny County and

obtained an advance or loan from FloatMe within the statute of limitations.

Id. at ¶¶ 113-14. She claimed that FloatMe violated the Loan Interest and

Protection Law, 41 P.S. § 101, et seq., and the Consumer Discount Company

Act, 7 P.S. § 6201, et seq., by collecting charges prohibited and in excess of

those allowed by these statutes. See id. at ¶¶ 123-33.

FloatMe subsequently filed preliminary objections, seeking to compel

arbitration based on a purported agreement for alternative dispute resolution.

See Pa.R.Civ.P. 1028(a)(6) (stating that preliminary objections may be filed

on the grounds of an agreement for alternative dispute resolution). In support

of its preliminary objections, FloatMe attached an affidavit from Josh Sanchez,

FloatMe’s chief executive officer (“Sanchez Affidavit”). FloatMe conveyed,

among other things, that Ms. Pierce signed up for FloatMe’s services on July

8, 2022, and — during the sign-up process on FloatMe’s app — Ms. Pierce was

prompted to enter her phone number. See Preliminary Objections to Ms.

Pierce’s First Amended Class Action Complaint, 6/24/24, at ¶¶ 6, 10; id. at

Sanchez Affidavit at ¶ 8. FloatMe claimed that, at the bottom of the screen

requesting her phone number, the app provided: “By continuing, you agree to

FloatMe’s Terms of Service and Privacy Policy.” Id. at ¶ 11. FloatMe stated

that a true and accurate copy of FloatMe’s app screens described in its

preliminary objections were attached to the Sanchez Affidavit. Id. A review

of the app screen containing the Terms of Service shows the following:

-3- J-A19008-25

Id. at Sanchez Affidavit at Exhibit A at unnumbered 2 (“Sanchez Affidavit

Account Sign-up Screens”).

FloatMe claimed that the ‘Terms of Service’ phrase is clickable and

directs the users to an online format of FloatMe’s Terms and Conditions. Id.

at ¶ 15.1 According to FloatMe, the Terms and Conditions include an

arbitration provision and class action waiver. See id. at ¶¶ 19-22. FloatMe

says that the Terms and Conditions also specify that the Federal Arbitration

Act (“FAA”), 9 U.S.C. § 1 et seq., governs arbitration disputes, and that Texas ____________________________________________

1 Though the link on the app is entitled ‘Terms of Service,’ and the agreement

is entitled ‘Terms and Conditions,’ both refer to the same agreement.

-4- J-A19008-25

law governs all claims, without regard to conflict-of-law rules. Id. at ¶¶ 23,

27; see also id. at Sanchez Affidavit at Exhibit B (“Terms & Conditions”).

Based on the foregoing, FloatMe argued that notice was provided to Ms.

Pierce of the existence of the Terms and Conditions, containing an arbitration

provision, through its sign-up process, which was required for any user to

obtain an advance. See id. at ¶ 36. FloatMe also contended that Ms. Pierce’s

claims are within the scope of the arbitration provision. Id. at ¶ 37. As such,

FloatMe insisted that the trial court should sustain FloatMe’s preliminary

objections and compel Ms. Pierce to separately arbitrate her claims with

FloatMe. Id. at ¶ 42.

Following FloatMe’s preliminary objections, Ms. Pierce filed a response

and memorandum of law in opposition. Therein, she argued, inter alia, that

Mr. Sanchez failed to state in his affidavit that the sign-up screens attached

to his affidavit were in effect when Ms. Pierce signed up for FloatMe’s app on

July 8, 2022. See Ms. Pierce’s Memorandum of Law in Opposition, 7/24/24,

at 3, 5; see also id. at 5 (“FloatMe’s affiant affirmatively states that the

contract attached to its preliminary objections[, i.e., the Terms and

Conditions,] was in effect on ‘the date on which [Ms. Pierce] signed up[.]’ But

the affiant makes no such affirmative representation with respect to the

screens attached to the affiant’s declaration. Without this type of evidence,

the [c]ourt cannot assume that any of the screens displayed to [Ms.] Pierce

included a notice that linked to an arbitration contract.”) (citations omitted).

Ms. Pierce contended that the sign-up screens attached by FloatMe to its

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