TomoCredit, a San Francisco startup that has been operational for five years, is currently facing a multitude of challenges, including a recent lawsuit filed by New York-based analytics company Prism Data. The lawsuit, which accuses Tomo of trademark infringement and unfair competition, is focused on the use of the term “CashScore.” Prism’s CashScore product evaluates creditworthiness based on consumers’ cash flow data, and Prism claims to have legitimately registered the trademark in August 2023, following an application in 2022. Tomo’s alleged unauthorized use of the term, which reportedly began in 2024, raises concerns regarding its competitive integrity. In a response to Forbes’ inquiries, Tomo’s general counsel acknowledged the lawsuit and asserted that the company was investigating the matter.
The lawsuit is a significant addition to Tomo’s woes, as it has been dealing with numerous consumer complaints regarding the difficulty of unsubscribing from its services. Notably, after receiving a multitude of complaints over the past year, Tomo finally introduced an online cancellation option in October. Adding to its troubles, major credit bureaus—Experian, TransUnion, and Equifax—terminated their data-sharing agreements with Tomo around the same time, exacerbating the company’s difficulties and raising questions about its operational legitimacy in the credit industry.
Further complicating matters, the lawsuit reveals ongoing tensions between Tomo and Prism Data. Prism alleges that Tomo has claimed to have used the “CashScore” term since 2018, despite the fact that Tomo was founded only in 2019. Prism’s founder, Jason Rosen, expressed strong discontent regarding Tomo’s actions, emphasizing that Prism has invested substantial resources in developing its brand and product and taking a staunch position against the misuse of its trademarks. Such allegations indicate potential fabrications on Tomo’s part, casting doubt on the company’s credibility and intentions.
Significantly, the complaints extend beyond the trademark issues, as Tomo’s operations are under scrutiny due to changes in its reporting practices to credit bureaus. After launching its TomoBoost credit-building product in 2023, which claimed to enhance consumers’ credit scores, Tomo found itself in troubled waters when all three major credit bureaus severed ties with the startup by late October 2024. This collaboration cessation forces Tomo to navigate how to fulfill its credit augmentation promises without the backing of the authorities it needs to operate effectively.
In response to the abrupt withdrawal of support from the credit bureaus, Tomo has made notable changes on its website regarding its service offerings. Initially, Tomo’s homepage featured claims about its ability to raise credit scores and had logos from the three major bureaus prominently displayed. However, as the narrative unfolded, Tomo progressively omitted these assurances and logos in October and November, revising statements to avoid specifying any relationship with the bureaus. This reduction in overt claims about credit score enhancement points to a deliberate attempt to adapt to its new reality after losing data-sharing privileges.
Despite these shifts in messaging, Tomo continues to accept new customers for its TomoBoost service, indicating ongoing financial operations. The pricing model remains a mystery, with plans ranging from $8.33 to $129.99, which raises questions on how such offerings are viable without bureau support. As the company juggles legal challenges, consumer complaints, and critical operational changes, TomoCredit’s future effectiveness and reputation in the credit industry now hang in the balance, highlighting the necessity for clear regulatory compliance and ethical standards in consumer finance.
