Payday Loans in Kansas City
Over the past two years, only four creditors from those who provide loans in the city of Kansas have been forced to pay, or at least obligated, after a financial settlement with the US government, due to unethical business practices.
What did this lead to?
It turns out that Kansas City is somewhat of a center for those who lend to salaries. Indeed, the weekly The Pitch called Kansas City the capital of loans to pay all of North America. There are many companies offering loans for a short time and for a high percentage of people who need cash and do not (or do not believe in it) other options available.
In each of these cases, it was proved that creditors who lent money to wages deceived their clients with misleading conditions, intricate loan agreements and interest rates of up to 700%. One of them, the so-called "magnate of a loan before payday" and, to a professional racer, Scott Tucker, was given a decision in the federal court for $ 1.266 billion. It became the largest in the history of the Federal Trade Commission (FTC)
Another creditor, Walter Mosely the elder, whose case has not yet been decided, was arrested on the same day as Tucker on the same charges. Mosely's financial group, by the way, was called Hydra Lenders (Gorgon creditors), which is not even a subtle humor. If you are going to start a predatory business related to loans, then it is possible to choose for him the same name as the famous gangsters, from Captain America, will not be the best idea.
Also there were Tim Coppinger and Ted Rowland, two lender-to-pay lenders, who went to the FTC on charges of fraudulent and unethical lending. As a result, Coppindier was ordered to pay $ 32 million, and Rowland $ 22 million.
So, what was done about all this?
If you want to find out what has become of micro-credit in America, look at what's happening in Kansas City, Missouri.
Since Kansas City became the center of loans to paychecks, it began to attract a lot of attention. For example, it was not a coincidence that the Bureau of Financial Protection of Consumers chose Kansas City from all other cities to announce the entry into force of new rules that could be controlled by predatory microfinance organizations.
And what happens with loans before pay in Kansas City, right now - this is what should happen. The federal government began its work by checking all reports of abuses and issuing heavy fines to those creditors who were seen in unethical behavior. Did you know that a decision of $ 1.266 billion against Scott Tucker is the largest financial settlement in the history of the FTC? It seems that they have taken this seriously enough.
In OppLoans, we believe in social responsibility, and we only give out loans that our customers can afford to pay. People who have an almost excellent credit history deserve much more than just a payday loan in Kansas City or somewhere else. Thus, for the sake of the borrowers of Kansas City and the whole country, we hope to see in the following months and years, as many of the same stories as this.