Will Payday Loan Fraud Payback Time Ever Come?
February 28th, 2008 amy
The Federal Trade Commission (FTC) is holding three payday loan services accountable for not disclosing annual percentage rate information on its internet ads. American Cash Market, Inc. Anderson Payday Loans, and CashPro dba MakePaydayToday.com boasted low loan fees in online advertisements without mentioning that their APRs range from 460-782 percent. Talk about some costly cash!
By federal law, lenders (payday loan shark or not) must disclose their annual percentage rate information. While the FTC urges consumers seeking fast cash to always read the fine print, folks can’t read what isn’t there. The FTC’s proposed consent orders would prohibit these three payday lenders from advertising certain credit offers without providing consumers with key disclosures, such as the APR, as required by the Truth in Lending Act and Regulation Z.
A press release by the FTC states that the agreement will be subject to public comment for 30 days, until March 31, 2008, after which the Commission will decide whether to make it final. There is no mention in release of the companies being fined or forced to pay retribution to those already taken by the scam.
