FTC Takes Action Against Cash Advance ‘Relief’ Scheme

FTC Takes Action Against Cash Advance ‘Relief’ Scheme

WASHINGTON—The Federal Trade Commission has brought action against a payday financial institution the agency alleges tries to get borrowers currently saddled with pay day loans deeper with debt.

Marking the time that is first FTC has had action against an organization promising cash advance credit card debt relief, the agency has filed an issue in federal region court to end the operations of Payday help Center, LLC, now referred to as PSC Administrative, LLC.

The FTC alleges the business has targeted customers with outstanding payday advances, saying they might assist resolve those debts however supplying small or none associated with relief that is financial promised. The FTC explained in a release as a result, many consumers stopped making payments to the original lenders and found themselves in even deeper financial trouble, having paid hundreds of dollars in fees for no benefit.

“The defendants promised to simply help individuals struggling in order to make re re re payments on the loans that are payday” said Jessica deep, manager regarding the FTC’s Bureau of customer Protection. “Instead, they took the amount of money and went, leaving their customers deeper with debt. ”

According to the grievance, beginning in 2012 the defendants used the Internet, radio, and telemarketing to target consumers who owe multiple debts on payday loans august.

The FTC alleges that the defendants induce consumers into signing up for their “financial difficulty system” by claiming that they can negotiate with all the loan providers to lessen customers’ re re payments and eradicate their financial obligation.