January 04, 2013

Payday lenders to stop deceptive practices

Payday lenders agree to stop 'deceptive and illegal' practices

By David HeathControversial lenders that claim to be owned by Indian tribes and offer payday loans over the Internet have agreed to stop practices that federal authorities say deceive borrowers and violate federal laws.

The agreement, filed in federal court, could save borrowers hundreds of dollars on each payday loan.

The Federal Trade Commission last year sued an Overland Park, Kan., company, AMG Services, to recover millions of dollars in revenues, alleging that borrowers were illegally deceived. The business was founded and is still managed by Scott Tucker, best known as an endurance race-car driver who recently won the Baltimore Grand Prix.

The Center for Public Integrity first exposed Tucker's business practices in an investigation done with CBS News.
Comment:  For more on payday loans, see Court Upholds Tribal Payday Loan Companies and "Rent-a-Tribe" Payday Loan Companies.

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