Pay day loans target customers without any credit or credit that is low. These high-interest loans vow quick money before the paycheck that is next in, but oftentimes they create dangerous rounds of brand new loans to repay the old people, draining funds and pressing borrowers ever deeper into poverty.
In 2018, the Federal Trade Commission sued major payday lender AMG solutions for deceptive lending that involved unlawful withdrawals and charged hidden fees. The $505 million in restitution AMG decided to may be the biggest reimbursement the FTC has administered up to now, covering an approximated 1.1 million borrowers. (more…)