The Federal Trade Commission ("FTC") returned more than $2.9 million to the victims of an alleged payday lending fraud scheme.

CWB Services, LLC ("CWB") and other defendants "used consumer information from online lead generators and data brokers to create fake payday loan agreements." According to the FTC, CWB allegedly made unauthorized deposits into the accounts of consumers. After depositing the funds, CWB allegedly withdrew recurring "finance" fees in respect of the unauthorized deposits. CWB also allegedly targeted consumers who had previously filled out applications for payday loans.

The FTC stated that under the settlement agreements, CWB is banned from the consumer lending business.

Commentary / Steven Lofchie

Query: Is there any coordination between the FTC and the CFPB, or with other regulatory agencies, as to who goes after which bad guys, whether it is payday lenders or credit reporting companies?

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