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Subprime auto lender Consumer Portfolio Services has agreed to pay more than $5.5 million to settle government allegations that it used illegal tactics in the servicing and collection of loans.
June 3 -
Internal memos and emails show that the controversial probe was not exclusively focused on payday lending. At the same time, Justice officials did not think it was their problem if lawfully operating payday lenders lost their banking relationships as a result of the investigation.
May 30 -
Other payments fights are grabbing more headlines, but banks are pushing hard against the Federal Trade Commission's proposed ban on the use of remotely created checks by telemarketers.
April 28
A federal judge has ruled that a Kansas-based payday lending operation intentionally deceived borrowers about the cost of their loans.
AMG Services in Overland, Kan., and some affiliated companies with ties to American Indian tribes inflated fees and failed to disclose charges, leaving consumers with debts far exceeding the original amount they borrowed, U.S. District Judge Gloria M. Navarro in Nevada said.
Employees of the firms,
A call to the law firm said to be representing AMG and the other firms, Muir Law Firm LLC, was not immediately returned.
The Federal Trade Commission filed charges against the companies in April 2012 that accused them of failing to disclose loan terms and improperly requiring customers to preauthorize electronic payments as a condition of receiving a loan.
AMG and the affiliates used deceptive documentation in connection with at least 5 million loans, the FTC said in a
The FTC reached a
AMG is said to have provided customer service, collections, loan documentation and other services to several payday loan firms associated with American Indian tribes: SFS, Red Cedar Services and MNE Services.
Judge Navarro ruled
Litigation in the case will continue to determine liability and damages.
