FTC Announces Relief For Borrowers Who Didn't Understand Payday Loan Terms
Did you get a payday loan that you didn’t understand or do not feel you truly signed up for it? If you did, you could be entitled to payday loan debt relief. In a recent judgment from the Federal Trade Commission, 12 companies were fined heavily for fraudulent payday loan practices. The companies include:
- Anasazi Group
- Basseterre Capital
- Cutter Group
- CWB Services
- Longboat Group
- Mass Street Group
- Namakan Capital
- Oread Group
- Orion Services
- Sandpoint Capital
- St. Armands Group
- Vandelier Group
The FTC recently cracked down on 12 payday loan companies who were accused of depositing cash into the accounts of people who had not completed a payday loan application. These companies then showed the consumers faked loan applications. If the consumers closed their bank accounts, the payday loan companies would sell the fake loans to debt collectors. With these faked loans, the two owners of the 12 companies were making over $46 million from $28 million in fraudulent payday loans.
The FTC Judgment
In the final judgement, the 12 companies were ordered to pay a total of $54 million. The owners of these companies also had to surrender some of their assets. Anyone who was told they had a payday loan will have the debt forgiven and all companies have been banned from reporting anything to the credit bureaus.
More Pressure From the Consumer Financial Protection Bureau
In another recent judgment, the Consumer Financial Protection Bureau completed a study of payday loans and found that borrowers were paying more in interest than they were the original loan. This is leading to a crackdown in the fall of 2015 that will change the way payday loan companies operate. Lenders will have to ensure their borrowers can meet the repayment terms.
In just four years, the Consumer Financial Protection Bureau has helped collect more than $10 billion for consumers who were caught up in illegal lending practices. They can be a huge help if you didn’t understand payday loan terms or don’t believe your loan is legal.
If you have questions or believe you’ve been part of a payday loan companies deceptive practices, call 1-877-FTC-HELP. You can also reach the Consumer Financial Protection Bureau at (855) 411-2372.