Business Blog
$505 million back for payday loan customers – and two messages for business
For consumers who took out loans with online payday lender AMG, the company’s illegal tactics left many of them saying OMG. But finally there’s good news for AMG customers arriving in the form of $505 million in refund checks just mailed to people who borrowed money between January 2008 through January 2013. That’s the largest amount ever sent in a refund program run by the FTC. At the same time, we have two messages for companies: a law enforcement warning to those who engage in similar shady tactics and a favor to ask of reputable members of the business community.
When consumers turned to AMG for online payday loans, they agreed to pay the company a one-time finance fee, but an emboldened AMG helped themselves to more – and more and more. Add up AMG’s hidden fees and unauthorized withdrawals and people ended up paying far more for the loans that the agreed-upon amount. For example, a consumer who took out a $300 loan agreed to pay back $390. But by the time AMG finished fleecing the account, the consumer actually had to pay $975. And remember: These were folks already struggling to make ends meet.
The FTC sued AMG and Scott A. Tucker for a long list of law violations. In 2016 a United States District Judge ruled that the defendants had engaged in a host of illegal practices. Then in 2017, a federal jury in New York convicted Tucker and his attorney Timothy Muir for crimes related to the lending scheme. Tucker was sentenced to more than 16 years in prison.
Although portions of the cases remain on appeal, the FTC and the Department of Justice have already obtained $505 million in settlements as a result of those law enforcement actions and related ones. And the FTC is sending that money right back where it belongs: to the more than one million consumers who were injured by AMG’s illegal actions.
Checks will be sent to consumers who took out loans between January 2008 and January 2013 from these AMG-related companies: 500FastCash, Advantage Cash Services, Ameriloan, OneClickCash, Star Cash Processing, UnitedCashLoans, and USFastCash. There is no application process and those consumers don’t have to do anything to get money back. The FTC and a refund administrator have used AMG’s business records to identify eligible consumers and calculate their refunds.
Consumers should cash their checks within 60 days. If they have questions – or if they borrowed from those lenders before January 2008 – they can call 1-866-730-8147. The FTC’s AMG refund page has more information.
In addition, the FTC has a law enforcement warning for companies contemplating similar tactics. It’s always bad business to engage in deceptive and unfair practices. But law enforcement agencies are particularly troubled when companies kick cash-strapped consumers when they’re down. And depending on the facts, questionable business practices can subject companies, individual corporate officers, and their attorneys to criminal prosecution.
Now for that favor we’re asking of business executives. HR professionals report that employees’ financial worries can affect their job performance. With more than a million checks going out to people who got payday loans from AMG, chances are you have an employee or two struggling to make ends meet. The FTC has free resources for consumers trying to get out of debt. An article on the break room bulletin board or information available through your HR team may be the first step toward helping them get their financial houses back in order.
In reply to Thank you for a job well done by J. Sisk
Did you get a check from the FTC? Checks from the FTC are legitimate. When you get a check from the Federal Trade Commission, it comes with a letter that explains why you got the check and gives details about the case. You and your bank can go to www.FTC.gov/AMG for details about the refund. You can call the company that the FTC hired to manage the refund process at 1-866-730-8147. If you get a check, you should cash or deposit it within 60 days.
In reply to If you move how will FTC find by Yolanda
The FTC is using postal records, like change of address records and mail forwarding records, to find people. Several people have put comments on here saying they got checks even after they moved. You could call the refund administrator at 1-866-730-8147.
In reply to Bridget Small, who are you by Natalie
Natalie, I'm an FTC staff member and one of the blog moderators. Many people ask similar questions, so sometimes I use similar answers.
In reply to Check I received was from a by Theresa B
If you received a letter and check from the FTC, the letter says FTC v AMG services on it. The letter tells you facts about the case: the Federal Trade Commission and Department of Justice won civil and criminal lawsuits against AMG Services. The letter explains that you got the check becuase you paid illegal finance fees. The letter says you can call 1-866-730-8147 if you have questions.
In reply to Afraid to put check in my by Theresa
In reply to I was feeling the same way. I by Coach
In reply to IS THERE A WAY TO SEE IF YOU by jcg
The refund administrator added more staff to answer the phones. If you still have questions, please call again.
In reply to Thank You for looking out for by Anna Sylvester
The letter says partial refund because the amount of your check is less than the total amount you paid to AMG Services, Inc. when it illegally charged you undisclosed and inflated fees. The FTC has sent out all the money that is available.
In reply to I went to my bank to try to by Gingi
In reply to I just went to my bank to day by Dee
In reply to I went to my bank to try to by Gingi
In reply to Why do these checks have NO by Adz
In reply to How can I get a copy of the by Judy Lipford
If you have trouble cashing or depositing the check, please call the company the FTC hired to manage the refund process. That is Rust Consulting, at 1-866-730-8147. Rust Consulting will tell you how to verify that the check is legitimate.
In reply to how do I find out if im by jamilla williams
You can call the company that the FTC hired to manage the refund process at 1-866-730-8147.