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 What if you are not sure if by Brandi
You can call the company that the FTC hired to manage the refund process at 1-866-730-8147.
In reply to Why is it so hard to cash by Mary Ann C.
Did you get a check from the FTC that says FTC v. AMG Services? Checks from the FTC are legitimate. 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 Why is it so hard to cash by Mary Ann C.
In reply to Thank you so much--I almost by Dave
In reply to Can or does anyone want to by Kim
In reply to Two checks over 3000.00 one by phoenixflame
In reply to Can or does anyone want to by Kim
In reply to Is this money taxable to by Sam
The FTC will not be sending IRS Forms 1099 to people who got partial refund checks. The FTC doesn't give tax advice; you could talk with someone at the IRS or a tax professional.
In reply to This is a surprise. Never by Maribel Yambao
You might get one check or you might get more than one check. The number of checks you get is connected to the name, address and account information the FTC found about you.
The FTC tried to combine information about accounts so it could send one check to each person. But sometimes it wasn't clear whether information was about one person or two people. When information was not clear, we did not combine it. For example, we did not combine accounts that had a maiden name and a married name, or accounts that had one name but two addresses. When we saw that, we sent separate checks.
The letter you got from the FTC said your check is a partial refund. It said 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 wonder how do they by Nae76
The partial refund amounts were calculated based on the amount a person lost from illegally charged fees on loans they took before January 2013 with a company affiliated with AMG Services. Each person will get a refund for a percentage of their loss.
In reply to I cannot find watermark on by john klehr
In reply to How is the refund calculated? by Nae76
The partial refund amounts were calculated based on the amount you lost from illegally charged fees on loans you took before January 2013 with a company affiliated with AMG Services. Each person will get a refund for a percentage of the amount they lost.
In reply to What should I do if I took by L. Loud
The partial refunds the FTC sent out apply only to loans taken from January 2008 - January 2013. You can report a problem you have with a business to the FTC at www.FTC.gov/Complaint. The information you give goes into secure database that the FTC and other law enforcement agencies use for investigations.
In reply to I received a check with a by Wanda Tatum
The letter you got from the FTC said your check is a partial refund. It says that 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 How do we know if the checks by Sheila
I have sent a similar message many times because many people ask the same question. More than one million people got checks from the FTC, and many people have asked if the checks are real. I don't know what you are holding, so I explain what the FTC sent out. That way, you can look at what you are holding and see how it compares to a legitimate FTC check.
Did you get a check from the FTC and AMG Services? 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 Why is my bank refusing to by MC
Please tell us which bank you are using and when you deposited the check. Thank you.
In reply to How can I find out if I'm by Kathy Mlejnek
You can call the company that the FTC hired to manage the refund process at 1-866-730-8147.
In reply to I tired to cash my check and by Klin
The check from the FTC is legitimate. You can read about the refund at www.FTC.gov/AMG or call the company that is managing the refund process at 1-866-730-8147.
In reply to So we get what your saying we by Sassy
Yes, your check is a 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. The FTC sent mailed 1,179,803 refund checks to people.
In reply to I got one with a letter by Frances Adkins
The letter you got from the FTC said your check is a partial refund. It says that 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 Will I receive another check by Toi Harris
The letter you got from the FTC said your check is a partial refund. It says that 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 think I may have thrown my by Sharon
You can call the company that the FTC hired to manage the refund process at 1-866-730-8147.
In reply to How would I find out if I am by Barbara Ellender
You can call the company that the FTC hired to manage the refund process at 1-866-730-8147.