IMPORTANT — PLEASE READ CAREFULLY: THESE TERMS CONSTITUTE A LEGALLY BINDING AGREEMENT BETWEEN YOU AND IOU FINANCE LLC. BY CREATING AN ACCOUNT OR USING THE IOU PLATFORM IN ANY WAY, YOU AGREE TO BE BOUND BY THESE TERMS. IF YOU DO NOT AGREE, DO NOT USE THE PLATFORM. THESE TERMS CONTAIN AN ARBITRATION CLAUSE AND CLASS ACTION WAIVER (SECTION 18) THAT AFFECT YOUR LEGAL RIGHTS.
1. Acceptance of Terms
These Terms of Service ("Terms") govern your access to and use of the IOU mobile application, the website at iou.llc, and all related services (collectively, the "Platform") operated by IOU Finance LLC, a Georgia limited liability company ("IOU," "Company," "we," "us," or "our").
By accessing or using the Platform, creating an account, or clicking "I Agree," you represent that: (a) you are at least 18 years of age; (b) you have the legal capacity to enter into a binding contract; (c) you are a resident of the United States; and (d) you have read, understood, and agree to be bound by these Terms and our Privacy Policy, incorporated herein by reference.
We reserve the right to modify these Terms at any time. For material changes, IOU Finance LLC will require your affirmative re-acceptance within the Platform before you may continue to use payment features. Your continued use following notification of non-material changes constitutes acceptance.
2. Description of Services
IOU is a platform for documenting financial agreements and maintaining payment records between consenting parties. IOU records agreements, confirmations, payment records, disputes, and notifications.
IOU FINANCE LLC IS NOT A BANK, LENDING INSTITUTION, DEBT COLLECTOR, DEBT BUYER, CREDIT REPORTING AGENCY, ESCROW PROVIDER, OR FINANCIAL ADVISOR. IOU DOES NOT HOLD FUNDS. IOU DOES NOT EXTEND CREDIT, SET INTEREST RATES, GUARANTEE LOANS, COLLECT DEBTS, ARBITRATE REFUNDS, OR PROVIDE FINANCIAL ADVICE OF ANY KIND. ALL AGREEMENT TERMS ARE SET EXCLUSIVELY BY THE USERS THEMSELVES.
Where payment processing is available, it is facilitated exclusively through Dwolla, Inc., a licensed money services business, under Dwolla's applicable terms and licenses. IOU Finance LLC does not hold, transfer, or transmit user funds. Your use of payment features constitutes acceptance of Dwolla's terms at dwolla.com/legal.
Bank account verification, where offered, is performed through Plaid Technologies, Inc. Your use of bank linking features constitutes acceptance of Plaid's terms at plaid.com/legal.
IOU Finance LLC is not itself a licensed money transmitter and does not hold money transmitter licenses in any state.
3. Account Registration and Eligibility
3.1 Eligibility Requirements
To create an IOU account, you must: be at least 18 years of age; be a U.S. resident; have a valid U.S. bank account; provide a valid government-issued photo ID; provide a valid U.S. mobile phone number; and not have been previously banned from the Platform.
3.2 Account Information
You agree to provide accurate, current, and complete information during registration and to keep it updated. You are responsible for all activities that occur under your account.
3.3 Geographic Availability
The Platform is currently available to residents of Georgia, Florida, and Massachusetts only. If you relocate outside a current state of operation, contact legal@iou.llc. Your account will be placed in read-only status until the Platform is available in your new state.
3.4 Identity Verification
IOU requires identity verification before enabling payment features. You represent that all identity documents you provide are genuine and accurate. Submission of false identity documents is a material breach of these Terms and may constitute fraud under applicable law.
3.5 Bank Account Verification
To link a bank account, you will be required to complete a micro-charge verification process. Two small charges will be applied to your linked account. You must confirm the exact amounts within the Platform to complete verification. These charges are non-refundable and cover the cost of bank account verification services. A new verification process is required each time you link a new bank account.
4. Payment Agreements
4.1 Nature of Agreements
The Platform enables users to create and document peer-to-peer payment agreements ("Agreements"). Each Agreement is a binding contract solely between the Lender (the party providing funds) and the Borrower (the party receiving funds). IOU Finance LLC is not a party to any Agreement and assumes no liability for the performance or non-performance of any Agreement.
4.2 Formation Requirements
Before any Agreement is executed, both parties must review and confirm all terms and provide explicit in-app or SMS confirmation of acceptance. Your confirmation constitutes your electronic signature and legally binding acceptance of the Agreement terms.
4.3 Agreement Terms
Agreement terms, including principal amount, interest rate, payment schedule, and duration, are set exclusively by the parties. The Platform automatically enforces applicable maximum interest rate limits based on the Lender's registered state: Georgia — 16% APR on principal of $3,000 or less (O.C.G.A. § 7-4-2), 18% on principal greater than $3,000; Florida — 18% APR on all consumer loan principal (Fla. Stat. § 687.03); Massachusetts — 20% APR on all consumer loan principal (M.G.L. c. 107, § 3).
4.4 Transaction Records
Upon execution of an Agreement, IOU generates a cryptographic record of the Agreement terms and the parties' acceptance. This record constitutes evidence that both parties agreed to the stated terms at the time of execution.
4.5 Payment Notifications
IOU will send automated payment reminders and notifications via SMS and in-app notification. Standard messaging rates may apply. See our SMS Terms for details.
4.6 No Debt Collection
IOU FINANCE LLC IS NOT A DEBT COLLECTOR. IOU DOES NOT AND WILL NOT PURSUE, ENFORCE, OR COLLECT DEBTS ON BEHALF OF ANY USER. IOU'S SOLE OBLIGATION UPON A PAYMENT FAILURE IS TO NOTIFY THE PARTIES AS DESCRIBED IN THESE TERMS.
4.7 Agreement Modifications
Post-execution modifications to an Agreement, including temporary payment pauses and suspension of automated payments, are available subject to the in-app terms presented at the time of modification. Modifications may require the consent of one or both parties as indicated in the Platform. No modification takes effect until IOU Finance LLC has recorded the required confirmation(s). Any outstanding balances under an Agreement remain legally owed by the Borrower to the Lender regardless of whether automated payment processing has been suspended.
5. Fees
Bank account verification: Two non-refundable micro-charges are assessed upon linking each new bank account to cover third-party verification costs. By linking a bank account, you authorize these charges.
Instant transfer fee: Users who elect instant transfer rather than standard processing will be charged one percent (1%) of the transfer amount where this option is available. Standard processing is provided at no additional charge.
Platform facilitation fee: For Agreements with an interest rate greater than zero percent (0%), IOU Finance LLC retains one percent (1%) of total interest actually collected as a platform facilitation fee, deducted before remittance to the Lender. No fee accrues on interest that is never collected.
All applicable fees will be disclosed before you complete any transaction.
6. Prohibited Conduct
You agree not to use the Platform to:
- Create fraudulent payment agreements or impersonate another person
- Submit false identity documents or financial information
- Use the Platform for money laundering, fraud, or any illegal purpose
- Create agreements for illegal goods or services
- Harass, threaten, or intimidate other users
- Attempt to circumvent or manipulate any Platform system
- Create multiple accounts to evade a restriction or suspension
- Use another person's identity or bank account without their explicit consent
- Reverse engineer, hack, or attempt to compromise the Platform's security
- Use the Platform for commercial lending without appropriate licenses
- Violate any applicable federal, state, or local law or regulation
7. Internal Reliability Record
IOU maintains an internal payment reliability record accessible only within the Platform. This record reflects your payment history on Agreements documented through the Platform.
THE INTERNAL RELIABILITY RECORD IS NOT A CONSUMER CREDIT SCORE AND IS NOT REGULATED BY THE FAIR CREDIT REPORTING ACT (FCRA). IT IS NOT REPORTED TO ANY CREDIT BUREAU OR CONSUMER REPORTING AGENCY. IT HAS NO EFFECT ON YOUR CREDIT REPORT OR CREDIT SCORE WITH ANY EXTERNAL INSTITUTION.
All transaction records and associated reliability record data will be automatically deleted twenty-four (24) months after the date of each transaction. The reliability record is used solely within the Platform to inform other users' voluntary decisions about entering into Agreements.
If you believe your reliability record reflects an error, submit a dispute to legal@iou.llc. IOU will review and respond within thirty (30) days.
8. Account Suspension and Termination
IOU Finance LLC reserves the right to suspend or terminate any account at any time, with or without notice, for any violation of these Terms or for any other reason IOU deems appropriate in its sole discretion. IOU also reserves the right to refuse service to any person for any lawful reason.
Upon termination, your right to use the Platform immediately ceases. You remain liable for all obligations under active payment agreements notwithstanding account termination. IOU Finance LLC will not collect or enforce outstanding balances on behalf of any party; the parties' rights against each other are unaffected by account termination.
9. Intellectual Property
All content, features, and functionality of the Platform are the exclusive property of IOU Finance LLC and are protected by applicable intellectual property laws. You are granted a limited, non-exclusive, non-transferable, revocable license to access and use the Platform for your personal, non-commercial use only.
10. Disclaimer of Warranties
THE PLATFORM IS PROVIDED ON AN "AS IS" AND "AS AVAILABLE" BASIS WITHOUT WARRANTIES OF ANY KIND. IOU FINANCE LLC EXPRESSLY DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND NON-INFRINGEMENT. IOU DOES NOT WARRANT THAT THE PLATFORM WILL BE UNINTERRUPTED OR ERROR-FREE, OR THAT ANY PAYMENT AGREEMENT CREATED THROUGH THE PLATFORM WILL BE LEGALLY ENFORCEABLE IN ANY PARTICULAR JURISDICTION.
11. Limitation of Liability
TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, IOU FINANCE LLC SHALL NOT BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES. IOU'S TOTAL LIABILITY FOR ALL CLAIMS SHALL NOT EXCEED THE GREATER OF (A) TOTAL FEES PAID BY YOU TO IOU IN THE PRECEDING TWELVE (12) MONTHS OR (B) ONE HUNDRED DOLLARS ($100.00). IOU SHALL NOT BE LIABLE FOR ANY AMOUNTS OWED UNDER ANY PAYMENT AGREEMENT BETWEEN USERS.
12. Indemnification
You agree to indemnify, defend, and hold harmless IOU Finance LLC and its officers, directors, employees, agents, and successors from and against any and all claims, liabilities, damages, losses, costs, and fees (including reasonable attorneys' fees) arising out of: your use of or inability to use the Platform; your violation of these Terms; your violation of any applicable law; any payment agreement you enter into through the Platform; any dispute between you and another user; or any false or inaccurate information you provide.
13. Privacy
Your use of the Platform is subject to our Privacy Policy, incorporated into these Terms by reference. By using the Platform, you consent to the collection, use, and disclosure of your information as described in the Privacy Policy.
14. Third-Party Services
The Platform may integrate with third-party services including Plaid Technologies, Inc. and Dwolla, Inc. Your use of those services is subject to their respective terms of service and privacy policies. IOU Finance LLC is not responsible for the acts or omissions of any third-party service provider.
15. Electronic Communications
By creating an account, you consent to receive electronic communications from IOU Finance LLC including transaction confirmations, payment notifications, account alerts, and updates to these Terms. You may not opt out of transactional communications related to active payment agreements. You agree that electronic communications satisfy any legal requirement that such communications be in writing.
16. Governing Law
These Terms shall be governed by the laws of the State of Georgia, without regard to its conflict of law provisions. Any legal action or proceeding arising out of or relating to these Terms shall be brought exclusively in state or federal courts located in Georgia.
17. Severability and Entire Agreement
If any provision of these Terms is found to be invalid or unenforceable, the remaining provisions will continue in full force and effect. These Terms, together with our Privacy Policy, constitute the entire agreement between you and IOU Finance LLC regarding your use of the Platform and supersede all prior agreements.
18. Arbitration Agreement and Class Action Waiver
PLEASE READ THIS SECTION CAREFULLY. IT REQUIRES YOU TO RESOLVE DISPUTES THROUGH BINDING ARBITRATION RATHER THAN IN COURT AND WAIVES YOUR RIGHT TO A CLASS ACTION.
18.1 Binding Arbitration
Any dispute, claim, or controversy arising out of or relating to these Terms or use of the Platform will be resolved by binding arbitration, except that each party retains the right to bring an individual action in small claims court.
18.2 CLASS ACTION WAIVER: YOU AND IOU FINANCE LLC AGREE THAT EACH MAY BRING CLAIMS ONLY IN AN INDIVIDUAL CAPACITY AND NOT AS A PLAINTIFF OR CLASS MEMBER IN ANY PURPORTED CLASS OR REPRESENTATIVE PROCEEDING.
18.3 Rules
Arbitration will be conducted by the American Arbitration Association (AAA) under its Consumer Arbitration Rules, in Georgia or via telephone or videoconference. The arbitrator's decision will be final and binding.
18.4 Opt-Out
You may opt out of this arbitration agreement by sending written notice to legal@iou.llc within thirty (30) days of first accepting these Terms. Your notice must include your name, address, and a clear statement that you wish to opt out.
19. Children's Privacy
The Platform is intended solely for users 18 years of age or older. IOU Finance LLC does not knowingly collect personal information from individuals under 13 in accordance with COPPA, 15 U.S.C. § 6501 et seq. If you believe a minor has created an account, contact legal@iou.llc immediately.
20. Payment Error Reports
If you believe a payment processing error occurred, notify IOU Finance LLC as soon as possible and no later than sixty (60) days after the date the error first appeared. Contact legal@iou.llc or use the in-app support feature.
IOU Finance LLC will investigate and notify you of findings within ten (10) business days, or up to forty-five (45) calendar days with written notice of extension. IOU's ability to remedy errors depends on the timeframes and rules imposed by Dwolla, Inc. and applicable ACH network operators.
IOU Finance LLC does not guarantee the reversal of any payment. IOU's error resolution obligations are limited to processing errors attributable to the Platform or its payment processors and do not extend to disputes between users regarding the underlying payment agreements.
21. Unauthorized Account Access
If you believe your account has been accessed without your authorization, notify IOU Finance LLC immediately at legal@iou.llc. You are responsible for all transactions you authorize and for maintaining the security of your account credentials. IOU Finance LLC is not liable for losses resulting from your failure to safeguard your credentials or from your failure to promptly report suspected unauthorized access.
22. No Payment Protection; Assumption of Risk
IOU FINANCE LLC DOES NOT OFFER PAYMENT GUARANTEES OR REIMBURSEMENT FOR ANY PAYMENT AGREEMENT. IF YOU LEND MONEY AND THE BORROWER DOES NOT REPAY, IOU WILL NOT REIMBURSE YOU. IOU DOES NOT ARBITRATE, REVERSE, OR GUARANTEE THE OUTCOME OF ANY PAYMENT AGREEMENT. ALL AGREEMENTS ARE SOLELY BETWEEN THE PARTIES. YOU ASSUME ALL RISK ASSOCIATED WITH PEER-TO-PEER PAYMENT AGREEMENTS. YOU SHOULD ONLY USE THE PLATFORM WITH PARTIES YOU KNOW AND TRUST.
23. Account Closure
You may request closure of your account at any time by contacting legal@iou.llc with the subject line "Account Closure Request." Closure will be processed within ten (10) business days, provided there are no active payment agreements pending final resolution.
Following closure, IOU Finance LLC will retain transaction records, identity verification documents, and account data for a minimum of five (5) years as required by applicable financial recordkeeping laws, or longer if required by law or ongoing legal proceedings.
24. Force Majeure
IOU Finance LLC shall not be liable for any delay or failure to perform its obligations caused by circumstances beyond its reasonable control, including acts of God, natural disasters, war, government actions, third-party infrastructure failures, cyberattacks, or public health emergencies. IOU will use commercially reasonable efforts to resume normal operations as promptly as practicable and will notify affected users through the Platform or by email.
25. Contact Information
IOU Finance LLC
Attn: Legal Department
Email: legal@iou.llc
Website: iou.llc
We will respond to all legal inquiries within thirty (30) days of receipt. These Terms were last updated on May 3, 2026.