Federal Trade Commission investigating online payday lender profiled by CBS News
In an email, Schulte stated he could not comment any further citing attorney-client privilege and the judge's order not to discuss the case. The chief of the Miami Nation said in an earlier letter in September to CBS that the tribe follows all federal laws.
The Federal Trade Commission declined comment on the ongoing investigation. A payday lending customer told CBS News she was interviewed for an hour by an investigator with the FTC about Ameriloan, one of the lenders affiliated with Scott Tucker and owned by the Miami Nation.
The FTC's investigation into these online tribal payday lenders is the agency's second confirmed investigation into online tribal payday lenders. The FTC took action against Lakota Cash based in South Dakota last September.
In its investigation, CBS News found a dozen former borrowers who said the companies deposit paycheck advances directly into the borrower's bank account. But within weeks, customers told CBS, the lender pulls money out of their accounts and begins charging confusing bank "fees" and "payments" often adding up to thousands more than what they borrowed.
Former employees also told CBS News the lenders, like Ameriloan and United Cash Loans, were "secretive" and purposely made the contracts difficult to understand so that customers would be blindsided by a barrage of fees and payments. Once the fees pile up many customers close their bank accounts and that's when, according to former customers and employees, the lender begins to harass the customer with relentless phone calls to their home and work.
The Colorado Attorney General's staff also charged in court that Tucker uses money from the payday lending profits for his private $13 million jet, and multi-milion dollar homes while funneling $2 million a month to his exclusive racing team.
"I was vulnerable and they were there to help me," says Patrick Taylor from North Carolina who lives on disability checks. Taylor says he applied for his first payday loan for $395 but he said over time he was hit with $1200 in fees. He said he closed his account and "[that's] when the gates of hell opened - they went straight to accusations." Taylor says the company representative threatened to arrest him.
Payday Lender Law - News
Numerous attorneys general, including Colorado, are pursuing the payday lending companies affiliated with Tucker for breaking state laws. Based on financial documents obtained by the Colorado Attorney General, the payday lending operation took in
Sam Rossi, a spokesman for the Senate Republicans, said the majority party has no payday lending legislation planned. House Speaker Bill Batchelder, a co-sponsor of the 2008 check-cashing law, did not respond to calls for comment.
Our investigation of the payday lending industry published Sunday shows that's been far from the case. Voters agreed to a law in 2008 restricting payday lenders from charging exorbitant interest rates on their two-week loans, often for $500.
The Consumer Action Law Centre says it has a case study showing why the governnment should cap interest rates for short term and payday loans. But the National Financial Services Federation says it's a draconian proposal that would put lenders out of
the National Consumer Law Center. “The sharks come circling, and all the industries that want a piece of that money come in.” Wu said payday lenders and other companies may fill the void left by the end of refund anticipation loans, known as RALs.
Lawmakers need to do more to prevent payday lenders from ...
When a majority of Ohio voters agree to change state law for the public good, wed like to think their wishes would be respected.
Our investigation of the payday lending industry published Sunday shows thats been far from the case.
Voters agreed to a law in 2008 restricting payday lenders from charging exorbitant interest rates on their two-week loans, often for $500. As was well documented back then, many borrowers could not repay their debts on time, leading them to seek additional payday loans and digging a steeper financial hole.
But the law failed miserably because the payday lending businesses began charging check-cashing fees of 6 to 10 percent, recouping their lost interest profits on the loans themselves.
The Ohio Department of Commerce has been unable to stop the simultaneous loan granting and check-cashing practice because theres no specific prohibition against it in Ohio law, nor is check cashing required. Of course, the poor often lack both bank accounts and more transportation to find another place to cash checks.
Ohio normally allows check-cashing fees because firms have some exposure should a check bounce. Thats not the case when a payday lender essentially cashes its own check. Such a service should be free.
Theres no denying payday lenders fill a need in our communities. Plenty of people need quick cash to get their car repaired in time for work. Not everyone has credit cards, nor should they.
But that doesnt mean companies should enrich themselves by exploiting those most in need.
Even worse, Ohio lawmakers have had two chances to correct this issue but apparently have been persuaded to ignore it by the 15 registered lobbyists in Columbus funded by payday lenders. The payday industry also has contributed $310,000 likely originating from the poorest among us to state lawmakers, mostly Republicans.
Thats more than ample evidence that payday lenders will do anything to exploit Ohios poor and line their own pockets.
Federal Trade Commission investigating online payday lender profiled by CBS News: Upon hearing that Colorado law... 
Federal Trade Commission Investigating Online Payday Lender Profiled by CBS News: Upon hearing that Colorado law... 
U.S. law allows federal agencies (but not private companies) to require employers to garnish wages w/o a court order