FTC Reaches Proposed $21 Million Settlement With Payday Lending Services
The FTC reached a proposed settlement with two payday lending services for $21 million, an agency news release said Friday. It’s the FTC’s largest recovery in a payday lending case, it said. The agency filed a complaint in 2012 against…
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AMG Services, MNE Services and other co-defendants, alleging the services charged consumers “undisclosed and inflated fees,” the agency said. The settlement the FTC reached with AMG and MNE “requires these companies to turn over millions of dollars that they took from financially-distressed consumers, and waive hundreds of millions in other charges,” Jessica Rich, FTC Bureau of Consumer Protection director, said. “It should be self-evident that payday lenders may not describe their loans as having a certain cost and then turn around and charge consumers substantially more.” The attorney for AMG and MNE didn’t comment.