Yesterday the CFPB and FTC announced separate actions against two online payday lenders operating eentially the exact same so-called scam.

Both “lenders” accumulated step-by-step customer information from to generate leads websites or data agents, including banking account figures, then deposited purported payday loans of $200-300 into those records electronically, after which accumulated biweekly finance fees “indefinitely,”

Ed oversees U.S. PIRG’s consumer that is federal, assisting to lead nationwide efforts to fully improve consumer credit scoring regulations, identification theft protections, item security laws and much more. Ed is co-founder and continuing frontrunner for the coalition, People in the us For Financial Reform, which fought when it comes to Dodd-Frank Wall Street Reform and customer Protection Act of 2010, including as the centerpiece the buyer Financial Protection Bureau. He had been granted the customer Federation of America’s Esther Peterson customer Service Award in 2006, Privacy Overseas’s Brandeis Award in 2003, and various yearly “Top Lobbyist” honors through the Hill as well as other outlets. Ed lives in Virginia, as well as on weekends he enjoys biking with friends regarding the numerous neighborhood bike tracks.

What exactly is worse than a high-cost cash advance? A payday loan-based scam. Yesterday, the CFPB and FTC held a news that is joint to announce split actions against two different online payday loan providers operating eentially exactly the same so-called scam and gathering a total of over $100 million bucks combined.

Both the Hydra Group, sued by CFPB, and a “web of businesses” run by Timothy Coppinger and Frampton Rowland and sued by the FTC, had the next fraudulent busine model: