U. S Court Favors FTC and Passes Judgement of $1.3 Billion Fine Against AMG Payday Lending Scheme Defendants

The Federal Trade Commision has found racecar driver Scott. A Tucker and some of Kansas City corporate defendants violating payday loans lending scheme under section 5 of the FTC Act and have been told to deposit a staggering $1.3 billion fine by a federal court on charges of deceiving customers with illegal fees.
FTC Chairwoman Edith Ramirez said, “This significant court judgment demonstrates the FTC’s determination to crack down on deceptive payday lenders and the people who run them”. He further added, “No consumer should be victimized by an unlawful scheme like this one, and it is especially detestable when those who can least afford to be charged undisclosed and inflated fees are the ones being targeted.
The $1.3 billion dollar fine stated by the U. S. District Court under Nevada District happens to be one of the largest legal judgment ever passed by the FTC. This fine uprooted from a case filed back in 2012, alleging operators of AMG Services Inc. gave false claims on borrowers being charged to return the loan amount with a one-time finance fee. But, in reality, the accused defendants not only withdrew multiple times from the consumer accounts, but each time accessed a finance fee as well. All this was done without the consumer’s knowledge of the real payday loans cost. The case is filed on the basis of what the consumers had to pay against what they were supposed to pay.
Chief Justice Gloria M. Navarro found Scott Tucker, is not only head of the operation, but was the main person behind this unlawful deed. Today an order was announced implementing a ban on Tucker and his companies like, Black Creek Capital Corporation, AMG Capital Management LLC, Broadmoor Capital Partners and Level 5 Motorsports LLC, from indulging in any type of consumer loan lending, or implying any conditions on the credit extensions of pre-authorized electronic fund transfers, misrepresentation of any goods/service related material facts or engaging in any illegal wage collection.
In fact, the defendants tried claiming in the state legal proceedings that it was affiliated to the Native American Tribes, but all in vain as the district judge did not favor their statement.
In July 2013, FTC had reached part of the settlement with some of the defendants. MNE services and AMG Services decided to pay $2.1 million in January 2015 to solve the case. Again in January 2016, SFS Inc and Red Cedar Services paid another $4.4 million. This way the Federal Court collected $4.1 million as judgment fine. They also imposed a ban on handling any sensitive financial information related to the consumer’s debts. This operation was selling fake payday loans to the collectors of the debts.
In fact, most of the sold-out lists were fake loans by an imposter lender named “Castle Peak” and an online loan lender accomplice “500FastCash”. To add a little footage to the 500FastCash payday lending, Joel Tucker used his brother Scott. A. Tucker’s name, to market the loans under the 500FastCash brand name. Though this is not the first time Scott Tucker is involved in a case. A while back in October 2016, he was given the order to pay $1.3 billion to consumers who filed a case against him for deceiving them. And, recently the Southern District of New York has also filed felony charges against him.