Federal Trade Commission Fines Payday Lending Company for Alleged Deception

Feb 2, 2016 by

Federal Trade Commission Fines Payday Lending Company for Alleged Deception

Companies and individuals that provide financial services to the people of this country – whether big banks or individually owned lending shops – owe it to consumers to be transparent in all of their dealings. We all know, however, that this is not always the case. There are always lenders that will be deceptive. It can be a big bank or the smallest of title loan companies, and the deception can be purposeful or possibly an oversight. The thing is, though, that the Federal Trade Commission (FTC), and other government watchdog groups are making it their collective mission to crack down on deceptive financial practices. Sure, it does seem to happen to alternative financial providers more often than big banks, but it happens nonetheless.

To illustrate this point, the FTC recently settled charges against two different payday lending companies. These charges allege that the lenders charged consumers illegally via inflated and sometimes undisclosed loan fees. The two companies are SFS Inc. and Red Cedar Services Inc. Each company had to pay $2.2 million. By doing so, they were allowed to jointly wave an estimated $68 million in fees to people that did not get collected.

These charges, when totaled up with some previous settlements, add up to a whopping $25 million that the FTC has collected related to this particular case against Red Cedar, AMG Services Inc. and SFS, along with various related lending operations. The case also allowed for about $353 million dollars in debt to be waived. The combined efforts have made this the largest recovery that the FTC has pulled of so far. And there is still pending litigation against some other defendants that will likely bring the total higher.

The Director of the Bureau of Consumer Protection, when asked about payday lending practices, said, “Payday lenders need to be honest about the terms of the loans they offer. These lenders charged borrowers more than they said they would. As a result of the FTC’s case, they are paying a steep price for their deception.”

The charges that kicked all of this off date back to April of 2012. These charges, which were filed in federal court, allege that the lending companies made misrepresentations about how much it would cost consumers to borrow money. This is considered to be a direct violation of the FTC Act. An example from this case was a time when Red Cedar, MNE Services and AMG Services used a contract which told the borrower they would have to pay $309 for a $300 loan. However, the borrower ended up being charged $975.

The defendants have also been accused of failing to disclose the actual annual percentage rates of the loans, along with other terms. This is being handled as a violation of the Truth in Lending Act. To make matters worse for the lending companies, they made preauthorized debits from the bank accounts of borrowers. This is a violation of the Electronic Funds Transfer Act. SFS and Red Cedar operated as lending companies under the names One Click Cash and 500 Fast Cash.

Lending Companies Should Keep These Kinds of Cases in Mind!

This case, like many others that the FTC and CFPB have been behind recently, should serve as a stern warning to lenders that there is always someone looking out for deceptive financial practices. The majority of payday lending companies out there make it a point to be straight with consumers. But it appears that those who don’t will have a heck of a lot of explaining to do; along with a lot of money to cough up.

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Considering a Different View on the Payday Lending Industry in Utah

Dec 1, 2015 by

Considering a Different View on the Payday Lending Industry in Utah

Recently, the Utah Department of Financial Institutions – an agency that regulates Utah state financial services of payday lenders, banks and other financial service providers – published an annual report to the public. Those who keep track of these sorts of things are very happy to announce that the laws revealed in the report allow a measure of protection for consumers and provide borrowers with choices when it comes to credit. However, there seems to be some bad data with a topic that means a lot to many people.

The report from the DFI stated that there were more than 45,000 short term (payday) loans that were not fully paid off after 10 weeks. In reality, these 45,000 loans are just a drop in the bucket when compared to the hundreds of thousands of payday advance loans that are given in Utah every year. The majority of Utah citizens are able to fully repay their loans within 10 weeks. Those who cannot – who only represent about 7 percent of total borrowers – were able to make use of state sanctioned safeguards that allow them to enter into a two month repayment plan that prevents interest from accruing.

The 10 week safety cap is considered an important piece of state legislature, and was passed not because of government watchdog groups or angry letters to editors of local papers, but was passed because of urgings from actual payday lending companies. The payday lenders are the only financial companies that have regulated interest cap limits. These safeguards help to prevent consumers from getting trapped in cycles of seemingly never ending debt.

You could wrack your brain all day long and not be able to come up with any other financial institution that allows their loans to stop accruing interest, and extends payback periods, without imposing additional costs on consumers. The majority of payday lenders in Utah are more than happy to offer this option to their customers, and consider it a unique perk that other financial service providers are unable – or even unwilling – to provide to their customer base.

It is sad, then, to learn that the allegations of “debt cycles” is not quite as accurate as one might think. New legislation is trying to force payday lenders to verify whether or not a person is able to repay their loans prior to approving said loans. You would think, if you listened to the opponents of payday lending, that the lenders are actually looking for the types of borrowers who are unable to pay them back. This would be silly, of course, because lenders are giving loans from their own funds, and surely want to get paid back in order to stay in business.

No matter how many articles get written that paint payday lending companies in a bad light, and no matter how much certain liberal parties would like to attack payday lenders, the fact remains that this industry is in favor – at least in the state of Utah – of policing itself and doing all that it can in order to assist the minority of consumers who are unable to pay back their payday loans within ten weeks. Of course, you won’t read about this sort of thing on most liberal, mainstream websites. But the truth is the truth, and the truth is that payday lenders are taking more risk than other lenders, while still showing more compassion to their customers than any other financial service providers in existence today.

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Payday Loans: Making Sense out of Bad Credit Loans

Jun 17, 2013 by

Payday Loans: Making Sense out of Bad Credit Loans

It’s always in your best interest to stay on top of things that directly impact your finances. If you plan on pursuing an online loan during those times when you are a bit low on money, it is a great idea to find out more about payday loans. These loans are used by millions of hard working people when they need a bit of brief financial relief. If you get tired of always waiting until payday to have money in your pocket, you may be surprised to find out more about bad credit loans for yourself.

Are Payday Advance Loans Unsecured Loans?

It’s good to start off this post about payday loans by telling you that these loans are unsecured. This basically means that you do not have to offer up any of your personal property – your home, car or other big ticket items – as collateral to your payday lenders. Long term loans from the bank are often secure loans, so it’s nice to know that there is a borrowing alternative that doesn’t require you to offer any security in order to receive the emergency cash that you need.

Personal Loans for all your Expensespersonal_loans_family

People often ask us what they can use their payday loan money for. We always tell these folks that they can pretty much do what they want with the money they borrow. You see, you never have to justify why you need to borrow money, as is often the case when you get a traditional bank loan. You can use your loan money to buy groceries, pay some late bills or even to go out and have a fun weekend with your friends. There’s no one keeping tabs on how you spend the money you borrow!

Payday Loans for Fast Cash Don’t Impact Your Credit Score

If you hear the term “bad credit loan” and think that your credit score is going to be negatively impacted, you can relax. You see, payday loans simply don’t have any financial ties to your credit whatsoever. You don’t need good credit to get one of these loans, and the acquisition of an online loan is not going to reflect poorly on your overall credit score. You may very well have terrible credit or great credit – your online loan is not going to impact your credit score in either scenario.

Our Conclusion on Fast Cash Loans

As you can see from the information provided to you in this post, there are some considerable benefits that you can get from payday loans online. If you are in tough spot right now, and need a little short term cash to hold you over, now may very well be the most opportune time to get moving on your first online cash advance loan. You may even end up with the money you need in as little as twenty four hours!

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Fast Cash: Payday Loans for Fast Money Access

Jun 10, 2013 by

Fast Cash: Payday Loans for Fast Money Access

It seems like the words “Fast” and “Cash” just seem to go together so very well, doesn’t it? Unfortunately, it’s not always easy to get fast cash when you really need it. If you’ve ever been a few days or even a few weeks away from your next pay check, you probably can agree with us when we say that not having enough money on hand is very stressful indeed.

But just because your boss doesn’t cut a check for you for a few weeks that doesn’t necessarily mean that you have to go without paying bills or making purchases. When you go online to get a payday loan, you can get the fast cash you are after to help make ends meet. Read on through every word of this article to find out all you need to know about getting your fast cash needs met online.

Unsecured Loans

It’s not unusual for big money lenders to ask you to put up some security to get a long term, big money loan. If you have a mortgage or big car loan, it’s highly likely that these loans are secured loans – loans where you have put up your own, personal property as collateral. Well, if you don’t like putting your possessions on the line, like that, you will be relieved to find out that your online payday loans are always unsecured loans. You do not have to put up any of your possessions as security when you get these kinds of loans online.


Bad Credit Loans

Nothing can make you feel worse than having bad credit. Some banks, credit unions and credit card companies will flat out refuse to offer you even the smallest of loans if you have less than perfect credit. Our network of payday lenders, however, is the exception to the rule when it comes to getting a cash loan with bad credit. You see, these lending companies are happy to provide loans to people who have credit problems. If you don’t like the feeling of getting turned down for a loan because of your credit, you’ll certainly enjoy applying for a cash loan online without submitting a credit check.

Personal Loans

Personal loans should be all about giving you the money that you need for any of your purchasing or bill paying needs. Unfortunately, some lenders want to stick their noses in your business and actually require you to tell them just why you wish to borrow money. Payday lenders do not ask you for this information. These companies treat personal loans as just that – personal! You can use the money that you borrow from these online lenders to pay bills, make purchases or just use to have some fun with. You never have to explain why it is that you are seeking out a loan.

Payday Loans for Fast Cash

Once your payday advance loan application is approved, you can expect to receive your money in one banking day. This fast money delivery speed amounts to most people getting their cash in 24 hours or so. As long as you apply during regular business hours, you will more than likely get your money on the next day. However, if you apply after hours or during the weekend, you may notice a slight delay of a day or two to get your funds directly deposited into your checking account or savings account.

Payday Advance Loans – The Ultimate Fast Cash Loans

Here are some of the main reasons that people consider payday loans the ultimate method to get fast cash:

  • These loans are easy to apply for.
  • Loan processing and approval happens quickly.
  • You actually do get your money fast – via direct deposit.
  • You get to pay your loan off in a few weeks.
  • You can use the money for anything you want to use it for.

You can probably agree, after having read all of this information about payday loans, that there are not any other loans available today that offer you the sheer convenience and speed that you get from today’s best online payday lenders.

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Fast Cash Loans: The Benefits of Payday Loans

May 30, 2013 by

Fast Cash Loans: The Benefits of Payday Loans

When people are in need of fast cash loans, it’s often a no-brainer to go online and take out a payday advance loan. However, some people don’t know about the benefits of these loans. If you aren’t sure if a payday loan is the right option for you, here are some of the major benefits and information you need to know when the time comes to find your fast cash loans solution.

Unsecured Loans

If you don’t like the idea of putting your automobile, home or other property on the line as collateral, simply to get a small, cash loan, you will be very pleased to learn that fast cash loans are unsecured loans. People often hesitate to take out secured loans, as they don’t like the idea of using their belongings as collateral. You will never be required to put up any property as security on your payday advance loan.

Bad Credit Loansbadcredit

Another major benefit that people get from payday advance fast cash loans is the fact that they never have to deal with a credit check. Payday lending companies do not use your credit score during the loan approval process. In other words – even a very low credit score will not disqualify you from getting a loan. We all know how much of a drag it is to have bad credit. It’s good to find out that your credit history does not come into the equation when you request an online payday advance loan.

Who Should get Online Personal Loans?

As good as we think these fast cash loans are, not everyone should apply for one of these loans. For example, if you have to pay for something that costs several thousand dollars, these relatively small cash loans are not going to be of much help. And if you are not currently employed, you should probably pass on getting a payday loan. These loans are in place to provide small amounts of money to people who are gainfully employed. Another group of folks who may not want to apply for payday loans are those people who do not have bank accounts. Having an active checking or savings account is required in order to get an online loan.

Just how long will it take to get my Fast Cash Loans?

Since you are interested in getting your cash quickly, you may be curious about how long it will take you to get the money that you apply for. The majority of cash advance loans are paid out within one business day after a loan application is officially approved. If you are in need to get money into your bank account as fast as possible, you have to agree that these fast cash loans are the obvious choice. Don’t settle for being stuck with no money for the next few weeks. You can take the first step by requesting your fast cash loan today.

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