Payday Loan Judgment is a Record for the FTC at 1.3 Billion
The Federal Trade Commission, in its first public remarks since a federal judge last week entered a $1.3 billion judgment against payday loan businessman Scott Tucker, called the penalty the largest of its kind, reports The Kansas City Star.
The judgment against Tucker and related entities eclipses the FTC’s previous record judgment from litigation: a $478 million judgment in 2012 ($501.4 million, when adjusted for inflation) against John Beck, the perpetrator of a deceptive real estate get-rich-quick scheme, according to reporter Steve Vockrodt.
U.S. District Court Judge Gloria Navarro last week entered a $1.3 billion judgment against Tucker and others to wrap up a case brought by the FTC in 2012.
“The FTC tracked and sued Tucker, his brother Blaine Tucker and several corporations under their control on claims that they extended loans that deceived consumers about the true cost of their credit,” Vockrodt explains. “For example, the FTC said that $300 loans extended by Tucker’s companies cost $390, at a 30 percent interest rate. In reality, through deceptive loan terms and automatic loan renewals, the FTC said many consumers ended up paying nearly $1,000.”