Customer Protection

When payday advances involve misleading methods, the Federal Trade Commission intercedes, because it did in case against lender AMG solutions.

U.S. District Judge Gloria M. Navarro recently ruled that the defendants deceived customers concerning the price of their personalbadcreditloans.net/reviews/money-mutual-loans-review loans by imposing undisclosed charges and fees that are inflated. Quite often, the defendants’ inflated fees kept borrowers with expected debts of a lot more than triple the amount that they had lent. In one single typical instance, the defendants allegedly told one customer that the $500 loan would price him $650 to settle. Nevertheless the defendants attempted to charge him $1,925 to settle the $500 loan.

Adopting an early on suggestion from Magistrate Judge Cam Ferenbach, Judge Navarro discovered that the defendants’ lending practices were misleading because by failing woefully to reveal costs and inflating charges, they hid from customers the real price of the pay day loans they offered.

This choice [...]