For my UK friends, here’s some very good news regarding a refund for Dollar Financial payday loan borrowers.
Dollar Financial has been forced to refund more than £15.4m to 147,000 customers.
After an investigation into Dollar Financial the FED’s ruled that between April 2014 and April 2015 – after implementation of harsh new lending rules – Dollar customers “may have suffered detriment as a result of the firm’s affordability checks, debt collection practices and systems errors.”
Dollar Financial owns The Money Shop and internet loan firms Payday UK, Payday Express and Ladder Loans.
As a result of this government fine, Dollar Financial has changed its lending criteria to meet the Financial Conduct Authority’s rules for high cost short term lenders.
The Federal Trade Commission is mailing 64,607 checks totaling $1.5 million to consumers who lost money to an online operation that illegally debited their bank accounts when they sought payday loans.
The action follows a federal court ruling in favor of the FTC in its case against Direct Benefits Group LLC, Voice Net Global LLC, Solid Core Solutions Inc., WKMS Inc., Kyle Wood, and Mark Berry, whose operations have been halted by the court. According to the FTC’s complaint, the defendants’ websites failed to disclose that they would use consumer’s bank account information to charge them for enrollment in unwanted programs and services.
Consumers who receive checks from the FTC’s refund administrator, Gilardi & Co., LLC, should deposit or cash them within 60 days of the mailing date. The FTC never requires consumers to pay money or to provide information before refund checks can be cashed.
Consumers who receive checks and have questions can contact Gilardi & Co., LLC at 1-877-255-2804. More information about the FTC’s refund program is available on the FTC’s website.
The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics. Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.
Harold E. Kirtz
Tired of getting multiple calls daily from collection departments?
Stop payday loan and title loan collectors from barbarding you with daily calls to your cell phone!
You can put a stop to all the collectors who are harrassing you by employing a few, simple strategies. The FTCA has implemented rules to put a stop to all the rob-dialers used by collection companies to automatically call consumers on their land lines and cell phones.
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Multiple, daily collection calls are just one of the many tactics collection companies use to frustrate the crap out of you and get you to pay them! To them, it’s just a numbers game! Don’t let them get away with it.
Use the techniques in my book to put an end to your cycle of debt. Payday loan and car title loan lenders count on you giving into them by their use of a daily barrage of phone calls, text messages and email.
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Payday Loan Help: Electronic Debits and Transactions
How to stop my payday loan lender from taking money out of my bank account electronically.
Did you give your payday loan lender authorization to take your funds?
Do you want to stop one or more payday loan payments out of a series you actually did authorize?
Do you want to cancel your authorization?
Get Payday Loan Help from the CFPB:
Your payday loan lender is taking more $$ than you authorized? Tell your bank or credit union IMMEDIATELY. Tell them you’re experiencing “unauthorized transfers.” The FED’s require banks and credit unions to put a stop to this!
Put a stop to multiple payday loan bank account electronic debits.
Did you sign an agreement that allows your lender to debit electronic payments at repeated intervals, such as loans that are repaid through installments, and payday loans that are automatically set up to renew a certain number of times? You can stop these! Just tell your bank or credit union – this may have to be in writing – at least three business days before the transfer is scheduled. The bank or credit union may require written confirmation of oral notice. Be aware your bank may charge fees for a stop payment.
Cancelling payday loan bank authorizations.
You can revoke any authorization that you gave a payday lender to take money out of your account. Follow the instructions in the initial payday loan authorization that describe how to tell your payday loan lender to stop. Lacking these instructions, the authorization may be completely invalid; STILL, tell the lender to stop taking money (debiting) your account.
Here’s exactly what to tell your payday lender both by phone and in writing: “My authorization to debit my account is revoked.” Keep a copy to take to your bank or credit union. Tell your bank or credit union that, “All further transfers are unauthorized” and you want them treated that way – either stopped or immediately refunded.
Failing this action by your bank or credit union, contact CFPB.
The FTC settled with Timothy A. Coppinger, Frampton T. Rowland III, and their companies who “targeted online payday loan applicants and, using information from lead generators and data brokers, deposited money into those applicants’ bank accounts without their permission. The defendants then withdrew reoccurring ‘finance’ charges without any of the payments going to pay down the principal owed.”
The Court subsequently halted the operation and froze the defendants’ assets pending litigation.
The FTC’s complaint against these alleged rogues stated “The defendants told consumers they had agreed to, and were obligated to pay for, the unauthorized “loans.” To support their claims, the defendants provided consumers with fake loan applications or other loan documents purportedly showing that consumers had authorized the loans. If consumers closed their bank accounts to stop the unauthorized debits, the defendants often sold the “loans” to debt buyers who then harassed consumers for payment.”
The FTC complaint went on to say, “The defendants also allegedly misrepresented the loans’ costs, even to consumers who wanted the loans. The loan documents misstated the loan’s finance charge, annual percentage rate, payment schedule, and total number of payments, while burying the loans’ true costs in fine print. The defendants allegedly violated the FTC Act, the Truth in Lending Act, and the Electronic Funds Transfer Act.”
The FTC proposed settlement “orders extinguish any consumer debt the defendants are owed, and bar them from reporting such debts to any credit reporting agency, and from selling or otherwise benefiting from customers’ personal information.”
The defendants in this particular FTC case are Timothy Coppinger, CWB Services LLC, Orion Services LLC, Sandpoint Capital LLC, Sandpoint LLC, Basseterre Capital LLC, Basseterre Capital LLC, Namakan Capital LLC, and Namakan Capital LLC, and Frampton Rowland and his companies, Anasazi ervices LLC, Anasazi Group LLC, Vandelier Group LLC, St. Armands Group LLC,; Longboat Group LLC, doing business as Cutter Group, and Oread Group LLC, d/b/a Mass Street Group.
The FTC settlement orders impose “consumer redress judgments of approximately $32 million and $22 million against Coppinger and his companies and Rowland and his companies, respectively.”