FTC Sued Frauds for Swindling Payday Loan Applicants

The Federal Trade Commission sued a pair of frauds for violating federal law. They billed payday loan applicants without getting their permission and refused to refund them. The federal court has temporary frozen the assets of the scammers, shut down their operations and appointed the receiver to take the business and its assets under control. The lawsuit provided by FTC is aimed to force the defendants to surrender their ill-gotten profits, refund the victims of the frauds and halt the illegal practices.

The victims of these operations were attracted via "terms and conditions" pop-up boxes which occurred after customers entered their personal data in sites soliciting applications for pay day loans online. These pop-up boxes looked like a part of application and required customers to perform authorization, though, the defendants or their continuity programs were never mentioned.

As a result, a lot of customers provided personal information including data concerning bank account and were tricked. Although, consumers realized that they had been enrolled in the useless programs only when they checked their bank balances or after being informed that their accounts had been overdrawn. Besides, when the victims tried to call consumer service numbers in order to demand the refund or to cancel the operation, no one answered, the line went dead or they were put on hold indefinitely.

In fact, these frauds attacked websites which didn't have enough protection of consumer personal information. So, be careful and look for reliable and safe sites willing to take out online installment loans with poor credit.