Payday lender gets what’s due… from the FTC

Have you ever been contacted by a lender who says you owe them money, but you’re pretty darn sure you don’t? You’re not the only one.

According to the FTC, some payday lenders bought consumer financial information from third parties. Using that financial information, they created fake loan agreements, deposited money into people’s accounts, and made unauthorized withdrawals, all in violation of federal law.

What’s more, the lenders lied about the total cost of the loans — not only to consumers who had never asked for the loans in the first place, but also to some who may have authorized the loans. According to the FTC, the lenders told the consumers that their total payments on their loan would be the principal plus a onetime finance charge. Instead, the lenders withdrew biweekly automatic payments that didn’t go toward the principal. So, unless the consumers contested or paid down the loans, they were making interest-only payments indefinitely.

The lenders’ ill-gotten gain? A cool $49 million over 10 months, according to the FTC’s review of bank records.

None of this sits well with the FTC, which asked a federal district court to stop the practices and to preserve the possibility of providing refunds to the consumers.

Before you decide to take out a short-term loan, consider all your alternatives, and use extreme caution when you share personal information online.

Blog Topics: 
Money & Credit

Comments

WHAT ABOUT BEING HARRASSED BE BILL COLLECTORS THAT LEGALLY YOUR EX N SELF SPLIT . HES A HALF MILLIONAIRE I LIVE ON 723 PLUS 161FOOD STAMPS. AND THE BILLS ARE CLOSE TO 30 YEARS OLD. (DIED 3 XS) GIVING BIRTH AND CAN HAVE NO MORE.

GLAMOR MAGZINE SAYS I HAVE A YEAR FREE SUBSCRIPTION. TOLD THEM DON'T WANT ANYTHING FREE. BECAUSE THE CHARGE U THE SECOND YEAR AND WHEN U DO NOT PAY THEM THEY SEND IT TO A COLLECTION AND WHEN I DON'T PAY THEM IT GOES ON MY CREDIT REPORT.

I HAD THIS HAPPEN TO ME SEVERAL YEARS AGO FROM A MALE MAGAZINE. WHY CAN'T U DO SOMETHING ABOUT THE HORRIBLE ACTION?

Yes I got calls

Why are not naming the thief that's doing it.

Had a lot of them ,But always pad it until One I notice a bill coming again to me so i didn't pay it .Now i have a collectors on my case . now my credit is bad an cant get even a small. loan on my name . what can i do tell me thank you Marie Nakachi

Hurt them girl if u can get a lawyer

WHICH LOAN COMPANIES SPECIFICALLY?

From the press release:

The complaint announced today was filed against: 1) CWB Services, LLC; 2) Orion Services, LLC; 3) Sand Point Capital, LLC; 4) Sandpoint, LLC; 5) Basseterre Capital, LLC (based in both Nevis and Delaware); 6) Namakan Capital, LLC; 7) Vandelier Group, LLC; 8) St. Armands Group, LLC; 9) Anasazi Group, LLC; 10) Anasazi Services, LLC; 11) Longboat Group, LLC, also doing business as (d/b/a) Cutter Group; 12) Oread Group, LLC, also d/b/a Mass Street Group; 13) Timothy A. Coppinger, individually and as a principal of one or more of the corporate defendants; and 14) Frampton T. Rowland, III, individually and as a principal of one or more of the corporate defendants.

Also a group called ARG GROUP is trying to say they r collecting a debt from cutter group. There address goes to a ups store..these people make me sick.

I had an issue with Mass Street Group (what was also knows as something Holdings) a few years ago, they took out at least $600 from my bank account. I filed FTC complaints about them at that time.

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