Federal Chief Justice Gloria Navarro ordered Scott Tucker and the payday loan companies he owns, including Level 5 Motorsports LLC and AMG Capital Management LLC, to pay $ 1.27 billion to the Federal Trade Commission to deceive customers.

Tucker’s companies systematically deceived those who sought payday loans, stating that they would pay much lower finance charges. A loan fee of up to 700% was then added to the amount owed by the customer. Charges were brought against Tucker by the FTC in 2012 in a civil complaint.

In her ruling, Navarro said she believed Tucker knew clients were unaware of the exact loan terms and was, at best, “recklessly indifferent” to how his businesses were. marketing rates. She added that she believed Tucker and his companies had engaged in fraudulent lending practices over the past eight years, and possibly longer.

Prior to the move, Tucker issued a statement claiming that his companies had not intentionally misled consumers and that all loans made through these companies were in compliance with the industry regulation.

In addition to the fine, Tucker was barred from granting other loans to Nevada consumers.

Tucker is also currently under investigation in Manhattan, where he is accused of staging a payday loan scam that raised some $ 2 billion from 4.5 million borrowers. Tucker has pleaded not guilty to these criminal charges.

This article was provided by our partners at money advices.com.

To find out more about MoneyTips:

Google bans ads for payday loans

Reduce the high price of payday loans (infographic)

Consumer Financial Protection Bureau Takes Payday Loan Debt



Source link