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EDITORIAL: Crackdown on pay day loan frauds is welcome

EDITORIAL: Crackdown on pay day loan frauds is welcome

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Money utilizing the Federal Trade Commission provides a permanent end to dishonest online pay day loan operations operate by two Kansas City area entrepreneurs.

The action, which needs to be approved with a judge that is federal shines an ignominious limelight on a cadre of neighborhood business owners who made quick fortunes by raiding the lender records of mostly low-income customers.

Timothy A. Coppinger, Frampton T. Rowland III and a number of the businesses consented to spend settlements totaling $54 million. The income will be employed to make up their victims.

The fees brought against the 2 businessmen are certainly shocking. The FTC alleged that Coppinger, Rowland and their enterprises acquired economic information regarding naive victims, deposited money within their bank records without authorization, then withdrew re re payments and stated these were gathering on loans.

However in many instances the customers hadn’t also authorized that loan. And the ones that has had been docked for fraudulent finance fees and rates of interest.

It’s good that federal enforcement has turn off the operations and victims will get some payment.

nevertheless the allegations appear egregious enough to raise questions regarding whether unlawful costs are warranted.

Last week’s settlement follows a similar action in January, when the FTC ordered Overland Park businessman Scott Tucker to cover $21 million as refunds to bilked customers.