$505 million in refunds sent to payday loan customers

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If you took out an online payday loan from a company affiliated with AMG Services, you may be getting a check in the mail from the FTC. The $505 million the FTC is returning to consumers makes this the largest refund program the agency has ever administered.

The FTC sued AMG and Scott A. Tucker for deceptive payday lending. When consumers took out loans, AMG said they would charge a one-time finance fee. Instead, AMG made multiple illegal withdrawals from peoples’ bank accounts and charged hidden fees. As a result, people paid far more for the loans than they had agreed to.

In 2016 the FTC won a court case against AMG and Scott Tucker. Then in 2017, a jury convicted Tucker and his attorney of crimes related to the lending scheme. The FTC and Department of Justice are using money obtained in both court actions to give refunds to consumers.

Here are answers to questions about AMG refunds.

Who will get a refund? Checks are being sent to consumers who took out loans between January 2008 and January 2013 from these AMG-related companies: 500FastCash, Advantage Cash Services, Ameriloan, OneClickCash, Star Cash Processing, UnitedCashLoans, and USFastCash.

How many people will get refunds? More than 1.1 million people will get refunds.

How does the FTC know who to send the checks to? The FTC and a refund administrator have used AMG’s business records to identify eligible consumers and calculate their refunds.

I’m eligible for a refund. What do I need to do? If you borrowed from one of the lenders listed above between January 2008 and January 2013, you don’t need to do anything. The checks are being mailed to eligible consumers automatically. There is no application process. If you borrowed from one of those lenders before January 2008, please call 1-866-730-8147.

How can I get more information? Visit the FTC’s AMG refund page or call 1-866-730-8147.

Three tips from the FTC:

  1. If you get a check, deposit or cash it within 60 days.
  2. The FTC never asks people to pay money or give information to cash refund checks. If someone asks you to pay to get a refund from the FTC, it’s a scam.
  3. The FTC has advice if you’re thinking about a payday loan or an online payday loan.
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Money & Credit

Comments

My husband and I received ours today! Check cashing companies in the area are flooded with people cashing these checks, some have stopped taking them and/or verifying big amounts. Also you can't mobile deposit them the checks say no ACH. We deposited them in our bank accounts!

Is that true? I deposited mine on my mobile app and it made the funds available right away.

You can use mobile app. Deposited mine yesterday through the app and it cleared.

I was able to deposit my check via mobile app and the funds were made available right away. (Texas) RBFCU Bank

I did the same and also my funds are also available. It seems like its legit after reading posts, the CBS site, twitter, and of course the FTC blogs. My bank just told me to wait 7 days to see if the check does clear, so that’s what im gonna do.

Received my yesterday. My bank put a 5-day hold on it when I deposited it today, so it won't be released until the 12th (which is technically 8 day), FYI

Got my check yesterday, went to make a deposit this morning thru ATM, the bank had an automatic reply for this deposit it says: "Notice of delayed deposit availability 10/12/18 - Checks within this deposit may not be paid because of information we've received from the paying bank or due to information we have within our files. further review may result in delayed availability of this deposit." So I can't guess why I have to wait 10 days for my money. I'm gonna call the FTC to see why my bank will not pay out this money to me immediately.

I received 2 checks yesterday in the mail (Oct 1 in California). Looking back through my emails, I had accounts with the companies listed (500FastCash, OneClickCash and UnitedCashLoans). I only did loans through 2 of the companies. I'm assuming that's why I received 2 checks. They probably evaluated the loans you had and what you paid with each company. One check was $189.00, the other was $1542.00. They were issued through US Bank. Hope this helps.

I had loans with two different ones and only received one check. Perhaps they combined mine. I’d be happy to receive another one lol

The FTC tried to combine information about accounts so it could send one check to each person. But sometimes it wasn't clear whether information was about one person or two people. When information was not clear, we did not combine it. For example, we did not combine accounts that had a maiden name and a married name, or accounts that had one name but two addresses. When we saw that, we sent separate checks.

I received two checks for significant amounts. My bank had placed hold on the checks. Is there anything I can do. I suspect the bank thinks it’s fraud.

What if we lived at a different address during the time

Is there a way to check to see if you’re getting a check. I think I recall using Ameriloan. Just don’t remember if it was during that time frame or not

What if you think you received a check and it was thrown away by accident

You can call the company that the FTC hired to manage the refund process at 1-866-730-8147.

Ya I used 3 different ones and they had been getting me for more than 3 years or more. I didn't all of my money back either.

I have 1 check will there be more funds coming

I received mine yesterday. I am wondering if this is legit also.

Received my and deposited.

I received a check yesterday for $210.94

Just got my check. I found this forum looking for validity. I knew nothing of this but that period of time was definitely a struggle in my life and I definitely remember taking out those payday loans. I'm grateful for the little surprise!

does anyone know if you have to claim this money on your taxes ?

The FTC will not send you an IRS Form 1099 related to your partial refund check. The FTC doesn't give tax advice; you could talk with someone at the IRS or a tax professional.

Got one for $2300 just deposited it at chase today. Took a few minutes for them to verify it but the lady at the bank said the check was legit. It just says pending for now in my account

Is there anyway you can check to see if you will be receiving one?

I got my check for $1,705.62. Mine said this is a partial payment..did anyone get wording like that in your letter..Im curious to know if more is coming.

The letter you got from the FTC said your check is a partial refund. It says that because the amount of your check is less than the total amount you paid to AMG Services, Inc. when it illegally charged you undisclosed and inflated fees. The FTC has sent out all the money that is available.

One thing that I would really love the FTC to look into: Let’s say you take out a loan a few days before your scheduled paycheck. You sign this agreement with the stated APRs and then you pay off your loan as schedule. So, why is it that you pay the same fee amount for the borrowed money for, say, 3 days as you would 30 days (if paid monthly)? This happens even if you borrow the day before your scheduled payday.

Good to hear there are a lot of payday loan and car title companies that need to be investigated like Wilshire Consumer Credit, Santander Credit , And the worst is 800 Loan Mart

What if my address has changed since the stated time period. Will refund checks be mailed to my old address that the loan company had on-file?

Please call the FTC's refund administrator at 1-866-730-8147.

Are these refund checks legitimate?

If you get a check from the Federal Trade Commission, it will come with an explanation of why you got the check and details about the case. You - and the bank - can look at www.FTC.gov/AMG for details about the refund. If you get a check, you should cash or deposit it within 60 days.

i got mine. sorta scared to deposit it.i scammed a month ago with another company for secret shoppers.here goes nothing it better not mess up my new bank account lol

Please let me know if there was an issue with cashing the check..

Thank you

I got one to, and I have been researching it, because i know that places can send out fake checks, but the representative the US bank said that she cant verify funds but she know that there has been refunds sent out to payday customers

Did you deposit this? and was it legit?

It is legit. I deposited mine and it cleared yesterday. It was a nice surprise to receive it!

JB- I received mine 10/4 I deposited it 10/5.My bank has a 12 day hold on it .

i got one today stating why i got it and its 703dollars
and i did use these companies

I got a check today from Refund Administrator - 6180 in Minnesota but do not see the artificial watermark on the back of the check. It scares me to deposit it. Your advice? Is that where the checks were sent from? It looks legit, but....

How do I know if I’m getting a check back?
I took out several payday loans

Bank of America wouldn’t honor the check when I took it into the branch, they suggest that since it’s drawn up on Us bank checks that I take it there So frustrating

I tried calling the refund dept and for 47 minutes never spoke with anyone . was on hold that long. I have a check for $174.78 and when I spoke to someone at FTC they said check number was correct but amount was weird. I need an answer before I deposit. I will not call the refund line again because to be on hold for 47 min is ridiculous .

Yes!!! I received mine yesterday for roughly $800. Since they're not asking you for money in order to deposit, that helps with the validity. Plus I researched the hell out of this lawsuit when I received mine to check for legitimacy. It's LEGIT!!

I received this check yesterday. I’m nervous too. Don’t want to have any problems with my account. I just want to make sure this is legit. I looked up everything. When you call the number your on hold for a long time.

I CAN'T SEEM TO GET THROUGH TO THE FTC 866 NUMBER

What if the name that is on my check is my maiden name? I've been married twice so my bank doesn't have record of my actual maiden name. My bank said I would either have to get with the financial institution the check is drawn off of. Which there isn't a branch within 100 miles of me. Or request for the FTC to send me a new check?

I signed my previous name then signed my new name and deposited it

My check says this was a partial payment will I receive another check?

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