Yesterday the CFPB and FTC announced split actions against two online payday lenders operating simply the same so-called scam. Both “lenders” accumulated detailed customer information from to generate leads web sites or information agents, including banking account figures, then deposited purported payday loans of $200-300 into those records electronically, after which accumulated biweekly finance fees “indefinitely,”
Writer: Ed Mierzwinski
Ed oversees U.S. PIRGвЂ™s federal customer system, assisting to lead national efforts to fully improve customer credit rating laws and regulations, identification theft defenses, item security laws and much more. Ed is co-founder and leader that is continuing of coalition, People in america For Financial Reform, which fought for the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, including as the centerpiece the customer Financial Protection Bureau. He had been awarded the customer Federation of America’s Esther Peterson customer provider Award in 2006, Privacy Overseas’s Brandeis Award in 2003, and many yearly “Top Lobbyist” prizes through the Hill as well as other outlets. Ed lives in Virginia, and on weekends he enjoys biking with buddies regarding the numerous bicycle that is local.
What exactly is worse than a payday loan that is high-cost? A payday loan-based scam. Yesterday, the CFPB and FTC held a news that is joint to announce split actions against two different online payday loan providers operating simply the same so-called scam and gathering a complete of over $100 million bucks combined.
Both the Hydra Group, sued by CFPB, and a “web of businesses” run by Timothy Coppinger and Frampton Rowland and sued by the FTC, had the next business model that is fraudulent
As CFPB Director Richard Cordray explained:
Today, the buyer Financial Protection Bureau is announcing an enforcement action against a payday that is online, the Hydra Group, which we think happens to be running an unlawful cash-grab scam to make purported loans on individuals without their prior permission. Continue reading