Payday Loan Scam Victims to Receive Refund Checks as Part of FTC Settlement
The victims of a payday loan scam should keep an eye on their mailbox.
The Federal Trade Commission (FTC) is mailing checks totaling about $16,430 to consumers harmed by an operation that tried to collect payday loan debts that the consumers didn't owe.
Each affected consumer will receive the full amount they lost, ranging from $120 to $2,990.
In February 2012, the FTC charged American Credit Crunchers LLC and its owner, Varang Thaker, with victimizing consumers who had received or inquired about online payday loans. Often pretending to be law enforcement officials, the defendants' callers falsely threatened to put consumers in jail if they did not make a payment on a purported loan.
Consumers who receive the checks from the FTC's refund administrator for this matter, Rust Consulting Inc., should deposit or cash them within 60 days of the mailing date.
The FTC never requires consumers to pay money or to provide information before refund checks can be cashed.