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FTC wins case against defendants in payday lending scam

150px-US-FederalTradeCommission-Seal.svgA federal judge ruled in favor of the FTC in its case against six defendants involving a scam that illegally debited consumers’ bank accounts when they visited the defendants’ websites seeking payday loans.

The FTC plans to seek a court order to require the defendants to return more than $9.5 million to consumers after they failed to disclose they would use the consumers’ bank account information to charge them for enrollment in unwanted programs and services.

According to the FTC’s complaint, the defendants’ websites requested that consumers provide personal and financial information, and at the end of the loan application offered unrelated programs and services. Many consumers who submitted applications were enrolled in the programs, which initially charged bank accounts up to $59.90 per month and later up to $99.90 per year.

Defendants named in the FTC complaint include Direct Benefits Group, Voice Net Global, Solid Core Solutions, WKMS, Kyle Wood and Mark Berry.

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