Consumers Cheated out of Money in Elaborate Payday Loan Scheme to Receive Refunds

CWB Services and related defendants used consumer information to create fake payday loan agreements

Consumers Cheated out of Money in Elaborate Payday Loan Scheme to Receive Refunds
Image:
February 16, 2018

Consumers who were victimized by a massive payday loan scheme and collectively cheated out of millions of dollars can soon expect a refund check in the mail.

The Federal Trade Commission (FTC) is mailing 72,836 checks totaling more than $2.9 million to people who lost money to the alleged scheme.

Created fake payday loan agreements

According to the FTC, CWB Services, LLC and related defendants used consumer information from online lead generators and data brokers to create fake payday loan agreements.

After depositing money into people's accounts without their permission, they withdrew recurring "finance" charges every two weeks without applying any of the payments to the supposed loan. In some instances, consumers applied for payday loans, but the defendants charged them more than they said they would.

Banned from the Business

Under settlements with the FTC, the defendants are now banned from the consumer lending business in the United States.

The average consumer refund amount in this case is $40.61. Recipients should deposit or cash their checks within 60 days.

Watch out for Scams

Remember, the FTC and other government agencies NEVER require consumers to pay money or provide sensitive personal information to cash refund checks. If anyone says otherwise or requests such information, it is more than likely a scam and should be reported to the FTC immediately.

Get More Info

Consumers with questions about this case or the refund process should contact the FTC's refund administrator, Epiq Systems, Inc., at (888) 521-5208.