FTC Cracks Down on Online Payday Lenders

As part of a crack down recovering over $25.5 million from payday lenders and waiver of over $350 million in fees, Red Cedar Services Inc. and SFS Inc. agreed to pay $2.2 million and waived $68 million in fees to consumers to settle Federal Trade Commission charges that they illegally charged consumers across the country undisclosed and inflated fees. The FTC alleges that the lenders misrepresented how much loans would cost consumers, including for example stating that a $300 loan would cost $390 to repay, but they charged consumers $975. Click here to read more.