Payday lender gets what’s due… from the FTC

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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.

Amanda, Did you ever get your money back?

Rasario, could you please tell me what press release this is?

Sure, it's the press release this blog refers to: FTC Action Halts Payday Loan Scheme That Bilked Tens of Millions From Consumers By Trapping Them Into Supposed “Loans” They Never Authorized. I'm sorry it wasn't clear on my previous reply. I fixed the link. Thanks.

FINALLY. I've been eagerly watching for news of this since 2012, and I am so glad to see the "lenders" on this complaint. This has been a never-ending battle for me. Calls to my employer, calls to my distant relatives, and the players in the game change every few weeks. It's "sold" to a new party downstream and the cycle repeats. I trusted that they'd eventually get their turn to be served, as they've threatened to do to me for two years. Thanks, FTC!

Oh they aren't done with their threats!!! I've been dealing with them since Aug 2011 and thought i made a settlement offer last fall to make it go away - today - I was almost arrested!!!!! They are charging me with criminal credit fraud for not paying them for a loan I never took out!!!!!!!!!!!

Report problems you have with a debt collector to your state Attorney General’s office, the Federal Trade Commission, and the Consumer Financial Protection Bureau. Many states have their own debt collection laws that are different from the federal Fair Debt Collection Practices Act. Your Attorney General’s office can help you determine your rights under your state’s law.

If you think someone stole your personal information and used it to get a loan, visit IdentityTheft.gov. It has information about what to do.

Will not give name of companies, but I declined a payday on line a couple of years ago. No money ever deposited or withdrawn from account. Shortly after, call said they have a NSF check returned. Told them no have overdraft protection, got mad at me and asked for address to turn into AG. Phone number when I called disconnected.
Two years later get another call about the same thing, told them I have proof, no money ever deposited or withdrawn from my account. Said we can go to court or settle out of court for $XXX.OO. I asked how do I get the money to you, that person gives me another person s name and calls him. She then snaps and asks didn t you say your dad was in law enforcement, yes and so was my father in law. That person starts to backpeddle, this will be dismissed, too late for them, I had plenty of information.
Get a think in the mail asking me for a copy of my social security card for a credit card I did not request. NO WAY AM I SENDING THAT. I called and told them that is a fraudulent application. Also told them dad and father in law were in law enforcement and this is a federal offense. With minimal information from me, someone tried to add their name to an account that was not yet complete. This gal I have known for 12 years said they picked the wrong person to mess with. In addition to my dad being retired, I am originally from Brooklyn Bedford Stuyvesant, New York City. I have the gloves off on this one, and if brass knuckles were legal, I would have them on my fingers.

Please report this to the FTC at ftc.gov/complaint. The information you give will go into a database that law enforcement uses for investigations.

Blog comments don't go into the database.

You can also report to your state and local consumer protection agencies.

They can't arrest you or have you arrested. (Sorry, you probably know that already since this post is a year old) lol Anyway, these people can't do crap. Some guy tried threatening me too, I laughed and told the guy come get me. I said I would be sitting on the porch sipping an iced tea, waiting for him. LOL!

Yeah, some guy called today too. Saying I took out a loan in 2011, which I never did. Have my old email. He said we can have you arrested for criminal fraudulent blah blah blah. I said ok well this call is being recorded and I will be forwarding it my lawyer whilst we are on the line. He hung up so damn fast hahaha

They called me and said same thing I will go to jail for up to 6 yrs

I'm getting the same thing done to ke. Every few months and I know we haven't took a loan from these people. They can't give me any information.

i RECEIVED TWO EMAILS FROM TWO DIFFERENT PEOPLE ABOUT A NOTICE TO APPEAR IN COURT. NEVER HEARD OF PAYDAY UNTIL TODAY.

was either of them Ace Cash Services? I received two threatening emails today as well, saying I was going to be sued. Threatening they would contact my employer, etc. I never had a payday loan with this company but they had the last 4 of my social and the last 4 #s of my old checking acct. I believe that a company I once used has sold my information to these scammers.

I just had a call from them today 02/11/2015 only it wasn't ace It was Financial Crimes they thrthreatened that by 2 p.m today i was going to jail if i didnt pay out of court cost of $396. Called my lawyer and they called them back he was stuttering be on the look out for phone number 512 686-4993 Adam Plevik or Paul Newkirk

received an email that I owe money to us fast cash and that I am violating fbi, bank fraud, etc. in order to settle a Austin Jones contact number 347-753 8205 ask that I call to settle. this is a scam and I would like information on how to stop these people.

You can file a complaint and report your experience at ftc.gov/complaint.Complaints help the FTC and other law enforcement agencies bring scam artists to justice. Watch this video to learn how to file a complaint with the FTC and why it matters. You can also forward unwanted or deceptive messages to the Federal Trade Commission at spam@uce.gov. Be sure to include the complete spam email.

About time those people are made to pay
Have personally been scammed twice myself from people who say I owe the FTC money & won't release my loans until that money they say I owe is paid

I had the same issue with a green pay day lender saying the i must pay 180 after they already taking 95 dollars and not refunding me and requesting more prior to release the loan. do not do business or deal with green payday loan in PA and this is the number they are calling from 412 342 5219.

This just happened to me today. What can I do????

HAD SOMEONE CALL ME FOR THE LAST TWO-THREE WEEKS ABOUT A PAYDAY LOAN AND NOW IRS. Office Julie Smith from the IRS at 202-241-9749 and Joe Thomas from Horizon medication

I had a call from some Indian guy saying he was from the IRS.

The IRS will send a notice in the mail, it will be certified and often times require a signiture if you owe money to them. You can always call the IRS as well.

I WAS SCAMMED THIS WAY ALSO SPEEDY CASH SAYS I OWE THEM MONEY AND I DONT MARRA WALLACE DOES NOT OWE ANT PAYDAY LOANS

These people have been calling me! A little under a month ago, these debt collectors started calling me and my family saying I had to pay them a debt, or I would have to go to court, and pay for all the court fees too.

The debt collectors said they worked for St Armunds, and I had a debt to pay back of $500. I never took out this debt, I didn't even have my credit card till June. How do you make these people go away?

I was a dumb one, took out a $250 loan from payday yes I set up automatic payment and when I paid off the $350 they kept taking payments out.I called them and they said no I just was paying on the interest that it has to roll over 3 times until paid,,This was several years ago, to this day I get different collection agency's calling me saying they have a suit against me, but it is not on my credit report.. and I had to call the police 3 times and report threats made against me.. how can I make these people leave me alone? every time I change mu number they always find me, they say I owe $750 now..Bull!!!

You have to send them a letter asking them in writing to stop calling you. This should stop the calls, but it won’t eliminate the debt. Find out what are your rights when dealing with debt collectors in this article. We’ve also written about this on this blog before.

Great to see someone protects the people! Need to find out how credit union's can charge fee's when you put money in when they open and they say funds were withdrawn at 5am! If you can't put money in until 8am no one should be able to take it before 8am ! The changing of time causes a fee then a domino effect of more fee's!

Not only do they charge very very high interest rates they now resort to these practices. When is this all going to end.......Lock up the executives and throw away the keys!!!!!!!

I had this happen to me exactly how the legal brief states. I was shopping for a valid installment loan of $2000.00. After working with a bank who would have approved the loan if it was for at least $3000.00(didn't need that much) I was given a web address by their representative. The sight looked official and listed testimonials of actual banks that you would normally be familiar with so I filled out the online application and it required that I provide a bank account to continue with the process. When I saw that the loan was initially approved by the Cutter Group for $500 and another from Hydra Financial for $300. I automatically denied the loans and thought that was the end of it. Later that day I received an email stating that they would call to confirm the information for the loans. I thought to myself ok I will let them know when they call that I declined the loan online and that would be the end of it. I received no call that day and the following day I got an email with the terms of the loan so I tried to contact both Hydra & Cutter Group using the phone number provided none of them worked. I emailed the contacts back and told them I declined this and never approved this. They told me that they had already made the deposit and they would retract the money. I advised them I am not paying any interest. I asked how long it would take and she said it would occur Mon or Tues of the following week. I waited 2 weeks then closed my account after some research. I soon found out that they didn't make an effort to debit the account when they said they would much later. I was not provided with any information other than email to make arrangements to pay off the debt plus the interest at that point. I was later contacted by a company that I made arrangements with but they wanted a check account number to debit for payment. I told them they could debit a prepaid card(I refuse to give anyone else my account no). I received a paid in full letter in 2013. Since then I have been contacted by 4 additional companies wanting payment for the same accounts but a different company name with the most recent one trying to collect for a Canyon Creek LLC (I have never heard of these people). They threatened to serve me with papers and would not accept the paid off letter as the other 3 companies had done. This all occurred on the 9/19th. I have recently come to find out that Canyon Creek LLC is associated with CWB Services which is Cutter Group the same company. Which is under investigation by the FTC I am tired of having to go through this over and over again. If I receive any letters for a judgement at my home or work I am going to be livid after finding all of this information out about this unscrupulous company. Any suggestions of what I need to do when or if the company that contacted me on 9/19 calls back?

Please report your experience at ftc.gov/complaint, and file a complaint with your local consumer protection office.

Thank you for the information. I have filed a complaint with the federal consumer finance group as well as my local attorney general's office.

I'm getting a call saying he's a police officer a warrient will be issued for me the attorney general is saying I owe 540 to a loan place I don't no anything about it I need help

It sounds like the call is from a fake collector. A fake can get some of your personal information, to make himself sound convincing, but he's still a fake. Some signs of a fake collector:

  • wants you to pay for a loan you do not recognize
  • refuses to give you a mailing address or phone number
  • asks you for personal or sensitive information
  • tries to scare you into paying by threatening to have you arrested, taken to court or reported to law enforcement

For more information, please see Don’t recognize that debt? Here’s what to do.

I hope these comments do not reflect the current state of our educational system or we are in a lot of trouble. How do we expect the FTC to provide solutions when they are unable to understand what the issue is in the first place. Please fellow citizens, help make better use of FTC resources starting with complete sentences. If we can provide the FTC with clear and concise messaging, they will become a greater tool for the people. I apologize for the rant. (I was tempted to insert grammatical error here) 010010110110111001101111011101110110110001100101011001000110011101100101001111010111000001101111011101110110010101110010

Well guys all this sounds familiar, I heard and seen it all. Claiming I owe this amount or that amount,I will be arrested tomorrow, contact an attorney,etc. But ya see I know exactly who I owe,when the debt occurred, the amount,whether I've paid them or not.There are some want to loan me so many thousands of dollars, when a reputable real loan company want loan me $100.00 because my credit is so damn bad!But listen up I did fall for a scam back in 20012 which I was scammed out of 800.00,with the promise of $10,000!And I haven't been the same Financially since,a lesson to be learned!Not again.Besides every real collector I owe is on my credit report,and I do know for a fact whether its mine or not.If these other "Loan Sharks" is legitimate why don't they send you a Certified letter in the mail,or something of that nature!

I STILL HAVE THINGS ON MY REPORT EVEN AFTER SPEAKING WITH THE (3) CRA'S. I QUOTE WHAT WAS SAID BY ONE OF THE AGENTS @ ONE OF YOUR CRA'S THEY MEANING THE CRS'S ARE PAID TO PUT THINGS ON YOUR CREDIT & WHEN ITS REMOVED THE COMPANY'S PAY THEM TO STICK IT BACK ON THIS BS & YOU & I KNOW THIS IS FACT NOT A RUMOR PEOPLE(CONSUMMERS). SHIT THAT BEEN TAKEN OFF MY REPORT SEEM TO FIND IT'S WAY BACK AND THEN THEY UPDATE THE INFO LIKE IT HAPPENED RECENTLY. SO THE FTC BETTER START LOOKING @WHO IS SCAMING US RIGHT UP UNDER OUR NOSES YEA THAT'S RIGHT CAME FROM ONE OF THERE OWN PEOPLE NOW TALK ABOUT SCAREY.FROM : MS. SHEILA DE LOACH 09/24/14 @ 7:03 PM WEDNESDAY EVENING.

So damn familiar!!!! I won't reveal yet what i'm doing becuase of situations just the same but i will say
this,i'm going way above & beyond all of their heads!!!!!!!!!!!!!!

Me too. If money is deposit into your account and the company promise to deposit more after you buy some gift cards to pay back to show effort to the government to boost your credit, wait to see if that check will bounce before because it will. If a company puts you through hoops and looses their temper it's because the scam is calculated and time sensitive before their scam is revealed by your bank. Always use a prepaid card from a store to receive funds never give your info out over the the phone or online. 9 times out of 10 it's a scam! Those Indian guys are out for blood. Speedy Cash is a SCAM. They write their own reviews. Don't fall for their tricks. They take arcana he of people who are financially Vanerable, tying to make ends meet and trying to clean their credit.

I got caughf in the loop of payday loans to the point where i had six going at once... on payday i would have to go to all of them to renew them and by the time i was done it would be pretty much my whole check was gone... after i lost my job i paid back what i could but defaulted on 3. I ended up paying back one and was left with speedy cash and plaingreenloans - an internet payday loan company... speedycash was tied to my netspend prepaid account so it was easy to avoid but after almostba year of hounding on the phone and collection notices i hadnt gotten any correspondence from them lately... forgetting all about them i deposited $500 into my netspend account the other day to pay a court fee which i needed to pay because my liscense got suspended. This morning i received a text saying $316 pending for speedy cash. My bank basically said there is nothing to be done. Now i have to wait 7 days to file dispute. Even then she said to win i will have too submit proof of resolution with lender. Speedy cash is shady as hell i understand that they wanted their money back but to keep trying to deduct funds for one time payment one year after i defaulted they totally screwed me over with my traffic court payment and i am so mad im lucky netspend doesnt do overdraft or like insufficient fund charges. Lesson is if you dont plan to pay back a payday loan close that account for good because just getting a new card wont help as card numbers change, your account and routing number do not. I feel so helpless and stupid for letting this happen.

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