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  #1  
Old 04-17-2012, 12:39 AM
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Payday Loans

Federal Trade Commission v. AMG Services, Inc.; Red Cedar Services, Inc., also doing business as 500FastCash; SFS, Inc., also doing business as OneClickCash; Tribal Financial Services, also doing business as Ameriloan, UnitedCashLoans, USFastCash, and Miami Nation Enterprises; AMG Capital Management, LLC; Level 5 Motorsports, LLC; Leadflash Consulting, LLC; Partner Weekly, LLC; Black Creek Capital Corporation; Broadmoor Capital Partners, LLC; The Muir Law Firm, LLC; Scott A. Tucker; Blaine A. Tucker; Timothy J. Muir; Don E. Brady; Robert D. Campbell; and Troy L. Little Axe, Defendants, and Park 269, LLC; and Kim C. Tucker, Relief Defendants.
(United States District Court for the District of Nevada)
Case No. 2:12-cv-00536
FTC File No. 112 3024

For Consumers:

Fraudulent Online Payday Lenders: Tapping Your Bank Account Again and Again


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Old 04-17-2012, 12:41 AM
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Re: Payday Loans

For Release: 04/02/2012
FTC Charges Payday Lending Scheme with Piling Inflated Fees on Borrowers and Making Unlawful Threats when Collecting
Defendants Charged Many Consumers More than Three Times the Amount Borrowed
The Federal Trade Commission has taken action against a payday lending operation that allegedly piled on undisclosed and inflated fees, and collected on loans illegally by threatening borrowers with arrest and lawsuits. The FTC has asked a federal court to stop the allegedly illegal business tactics while the agency pursues its case against the defendants.

Like other payday lenders in recent years, this operation has claimed in state legal proceedings that it is affiliated with Native American tribes, and therefore immune from legal action. However, the FTC alleges that the defendants’ claims of tribal affiliation do not exempt them from complying with federal law.

This is the second time in seven months that the FTC has brought suit against a payday lender that has used a tribal affiliation defense against actions by state authorities. The FTC recently expanded its first such case, against Payday Financial, LLC, adding charges that the operation illegally sued debt-burdened consumers in a South Dakota tribal court that did not have jurisdiction over their cases.



http://www.ftc.gov/opa/2012/04/amg.shtm

One of the defendants who allegedly controlled the lending companies is automobile racer Scott Tucker. According to documents filed with the court, Tucker and his co-defendant and brother, Blaine Tucker, allegedly transferred more than $40 million dollars collected from consumers by the payday lending companies to another company Scott Tucker controls, Level 5 Motor Sports, for “sponsorship” fees that benefit Scott Tucker’s automobile racing.

The Tuckers and the other defendants claimed they would charge borrowers the amount borrowed plus a one-time finance fee. Instead, the FTC alleges, the defendants made multiple withdrawals from borrowers’ bank accounts and assessed a new finance fee each time, without disclosing the true costs of the loan. The defendants also falsely threatened that consumers could be arrested, prosecuted, or imprisoned for failing to pay and that the defendants would sue them if they did not pay, according to the FTC.

According to documents filed by the FTC, over the last five years, the defendants’ deceptive and illegal tactics have generated more than 7,500 complaints to law enforcement authorities. In many cases, the defendants’ inflated fees left borrowers with supposed debts of more than triple the amount they had borrowed. In one typical example, the defendants allegedly told consumer Eric Barboza that a $500 loan would cost him $650 to repay. But the defendants attempted to charge him $1,925 to pay off the $500 loan, and threatened him with arrest when he balked at paying that amount.



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Old 03-14-2014, 12:59 AM
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mikelouis mikelouis is offline
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Re: Payday Loans

Payday loans are not a scam the only problem is that the amount of interest these guys charge is crazy that is why in most countries, they have been banned for flaunting the banking rules. Just because you are desperate to get money the person will just impose crazy interests to earn money from you.


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