11
Apr

Tribe Payday Loans: $968M FTC Fine

“Debt collectors cannot garnish consumers’ wages without a court order, and they cannot sue consumers in a tribal court that doesn’t have jurisdiction over their cases,” said Jessica Rich, director of the FTC’s Bureau of Consumer Protection. “Regardless of tribal affiliation, debt collectors must comply with federal law.”

Webb and his companies, under terms of the settlement, agreed to a $550,000 civil penalty for violating the Credit Practices Rule, which prohibits payday lenders from requiring borrowers to consent to have wages taken directly out of their paychecks in the event of a default. The defendants surrendered $417,740 stemming from their prior practice of attempting to garnish consumers’ wages without court orders, according to a partial judgment in favor of the FTC in September 2013.

Along with the monetary payment imposed on the defendants, the settlement bans… Read More

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