TomoCredit, a San Francisco-based startup that attempts to enhance consumers’ credit scores, is facing escalating challenges, including a recent lawsuit alleging trademark infringement and unfair competition. The suit was filed by the New York analytics firm Prism Data, accusing Tomo of infringing on its trademark for the CashScore service, which assesses creditworthiness using consumers’ cash flow information. Tomo’s general counsel Fred Ghodoosi acknowledged the lawsuit in an email, stating the company was investigating the matter and would issue a formal comment soon.
This lawsuit adds to Tomo’s existing problems, which include a significant number of consumer complaints regarding difficulties with canceling subscriptions. In October, Tomo finally introduced an online cancellation option, indicating internal pressure to improve customer service. Compounding these issues, major credit bureaus—Experian, TransUnion, and Equifax—terminated their data-sharing agreements with Tomo, isolating the company from critical credit reporting channels. This development has raised questions about the credibility and effectiveness of Tomo’s credit-boosting claims.
The claims made in Prism’s lawsuit are particularly striking, detailing several interactions between the two companies over the past six months. Prism contends that it secured its CashScore trademark in August 2023 and that Tomo began using the term publicly only in 2024, shortly after launching its credit score product. Tomo initially argued that “CashScore” was a generic term and claimed it had been using it since 2018, despite being established in 2019. According to the lawsuit, Tomo allegedly altered its blog posts to fabricate evidence supporting this claim, prompting strong condemnation from Prism’s CEO, Jason Rosen, who highlighted the serious investment and brand equity his company has built.
In addition, Tomo has made several adjustments to its website in the wake of the credit bureaus severing ties and increasing scrutiny from consumers. Initially promoting its TomoBoost product, which claimed to improve credit scores by reporting to credit bureaus, Tomo faced significant backlash. After the bureaus requested the removal of their logos and branding from the site, Tomo altered its messaging. By early November, references to the credit bureaus were entirely removed, transitioning from phrases like “Raise your credit score” to “Monitor your credit score,” creating a clearer distinction from prior claims.
Despite these changes, the pricing section of Tomo’s website still promotes its VIP plan as offering substantial credit lines and instantaneous credit boosts, even asserting some level of support from major credit bureaus. This inconsistency raises concerns regarding Tomo’s ability to deliver on its promises, especially as they appear to still be accepting new customers for their subscription service, charging between $8.33 and $129.99 monthly. Given that the bureaus have cut off their support, industry observers question the effectiveness of the services being marketed to consumers.
As Tomo navigates these legal and reputational challenges, the future of the company remains uncertain. The litigation with Prism is just one of many hurdles that could significantly impact Tomo’s operations and its credibility in the credit industry. The combination of consumer complaints, the cessation of partnerships with credit bureaus, and the potential consequences of a lawsuit underscore the need for Tomo to reassess its business model and communication strategies.
Moving forward, Tomo’s ability to resolve these issues—both legally and operationally—will be crucial as it seeks to regain consumer trust and stability within a competitive market. With the credit landscape rapidly evolving and transparency becoming increasingly important, Tomo must demonstrate a commitment to ethical practices and clear, accurate messaging if it hopes to survive these turbulent times and regain its footing in the fintech space.