Blog Posts Tagged with Credit and Finance

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Record $1.3 billion ruling against Scott Tucker and others behind AMG payday lending

The FTC’s lawsuit against AMG Services, Scott Tucker, and others challenged deceptive and unfair payday lending and debt collection practices that targeted cash-strapped consumers. The case has already resulted in an important ruling related to the scope of the FTC Act. But an order granting the FTC’s Motion for Summary Judgment includes a history-making provision: a $1.3 billion financial remedy – the largest ever in a litigated FTC case.

Deal or no deal? FTC challenges yo-yo financing tactics

Not many kids play with yo-yos these days, but an FTC complaint against nine related Los Angeles-area car dealers charges that the companies engaged in (among other things) illegal yo-yo financing practices – and for affected consumers, it was no game. Even if you don’t have clients in the auto industry, this case merits your attention.

FinTech Forum: A closer look at marketplace lending

Innovative financial technology is changing the way consumers borrow, share, and spend money, offering the promise of increased convenience and access to financial services. The FTC is hosting a series of FinTech events to broadly explore the implications of this financial technology for consumers, building on the agency’s longstanding focus on technological innovation and extensive enforcement experience in the area of non-bank financial practices.

Un-suit-able?

For swimmers struggling to stay afloat, imagine this good news/bad news scenario. The good news: Someone throws a life preserver in your direction. The bad news: It’s made of concrete. According to an FTC lawsuit, that’s a rough analogy to the services that Damian Kutzner, Brookstone Law, Advantis Law, attorney Vito Torchia, Jr., and others offered to consumers caught in the undertow of foreclosure.

Are you following FinTech?

FinTech is the latest word in emerging financial technology and the FTC’s FinTech Forum will offer the latest word on the latest word. The topic for today’s half-day conference is marketplace lending – nonbank financial platforms that use technology to reach potential borrowers, evaluate creditworthiness, and facilitate loans. Can’t participate in person? Watch the webcast from the FinTech event page.

7 quotes of note from the Amazon decision

In Amazon’s Appstore, many apps geared toward kids prompted them to use fictitious currency, like a “boatload of doughnuts” or a “can of stars,” as part of game play. But a federal district court recently agreed with the FTC that Amazon’s practice of charging cold, hard cash for those imaginary items and billing parents and account holders without their express informed consent violates Section 5 of the FTC Act.

And the Partner Award goes to . . .

“Is it getting hot in here?” For companies that engage in illegal debt collection practices, the answer is a resounding yes. One reason is the unprecedented cooperative effort by federal and state law enforcers to turn up the heat on violators. There’s more to come, of course, but efforts like Operation Collection Protection prove that consumer protection agencies are stronger when we work together.

A stark lesson about buying and selling debts

A complaint filed by the FTC and the Illinois Attorney General against an operation that used names like Stark Law, Stark Recovery, and Capital Harris Miller & Associates alleges a veritable smorgasbord of debt collection violations. But the Stark Law lawsuit includes an additional allegation that should send a stark warning to those in the debt buying business.

Debt collectors: You may “like” social media and texts, but are you complying with the law?

We get this question a lot: “Is it OK to use text messages or social media to collect debts?” Do you want the short answer or the more detailed one? The short answer is that the Fair Debt Collection Practices Act doesn’t prohibit collectors from using texts or social media. But – and this is a major caveat – recent FTC law enforcement actions suggest that using them can present particular compliance challenges. That’s the short answer. If you collect debts as part of your business, read on to find out more.

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