The Federal Trade Commission, in a blog post, cautioned the collection industry to avoid buying, selling or collecting any alleged payday loan debt portfolios serviced by AMG Services.
The former general counsel of AMG Services, under a penalty of perjury, has signed a declaration stating that loans from USFastCash, 500FastCash, OneClickCash, Ameriloan, United Cash Loans, AdvantageCashServices and StarCashProcessing have never been placed with, or sold to, any third party for collection.
The FTC’s notice warns that consumers named in the accounts don't owe the alleged debts and confirms that the lenders have never authorized, assigned or sold any of their loans for third-party collection.
Companies in possession of one of portfolios from USFastCash, 500FastCash, OneClickCash, Ameriloan, United Cash Loans, AdvantageCashServices and StarCashProcessing shouldn't attempt to collect these debts or try to sell the portfolio to anyone else, the FTC continues. The FTC is asking anyone with information about portfolios of purported payday loan debts from the lenders that are being bought, sold, collected or peddled to contact Michael Goldstein at the FTC. He can be reached at firstname.lastname@example.org or 202.326.3673.
AMG Services, based in Overland Park, Kan., in January was part of an FTC settlement against two payday lenders that allegedly illegally charged consumers undisclosed and inflated fees.
In February, authorities cracked down on two payday lending empires, arresting three people, including race car driver Scott Tucker, who controls AMG Services. Prosecutors alleged that Tucker, who competes on U.S. and European racing circuits, ran a $2 billion enterprise that used sham relationships with Native American tribes to claim immunity from state enforcement actions. The indictment named AMG Services and several other companies.