Tuesday, February 24, 2009

Feds Ban Online Payday Loan Companies from Certain Practices

Nevada Online Payday Loans Companies Sued

gavelFederal and state regulators in Nevada have gotten a court order that bars seven online payday loan companies from engaging in a few specific practices.

Federal Trade Commission claims the companies have used “deceptive” lending and collection practices.

Who is involved

The companies named in the lawsuit, which was filed November 2008, are: Leads Global Inc., Waterfront Investments Inc., ACH Cash Inc., HBS Services Inc., Lotus Leads Inc., First4Leads Inc., Rovinge International Inc.

The companies have agreed to obey the court order until the case goes to trial.

Accusations

The companies are accused of omitting loan terms from online payday loan applications. The suit also says the companies “used abusive and deceptive collection tactics.”

Here is a list of some other claims prosecutors are making:

“Falsely threatening consumers with arrest or imprisonment, falsely claiming that consumers are legally obligated to pay the debts, threatening to take legal action they cannot take, repeatedly calling consumers at work and using abusive and profane language; and disclosing consumers' purported debts to co-workers, employers and other third parties.”

Not a fireable offense

The lawsuit does not seek to shut these companies down or take away their lending licenses. The prosecutors will seek to bar the companies from using the practices named in the future.
The court will also ask that the companies forfeit any money acquired using said practices. ... click here to read the rest of the article titled "Feds Ban Online Payday Loan Companies from Certain Practices"

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