Two companies whose business is all about online payday lending operating in the US agreed to settle a huge $21 million because of their deceiving lending practices. On Friday, the FTC announced the settlement with MNE Services Inc. and Overland Park, Kan, an AMG Services Inc. based. The authorities said that these two companies were part of the online loan operation; they charged consumers of undisclosed fees. The FTC further said that the entire operation of the companies misled consumers; they told them that a loan of $300 will only be paid back for only $390 but they charged more to the amount of $975. The government expressed that the lenders are operating under these brand names: United Cash, Ameriloan, US Fast Cash, Star Cash Processing and Advantage Cash Services. They did not disclose the accurate interest rates extended to consumers.
The payday loan lenders should disclose the accurate figures in terms of interest rates and other fees. One example of a lending company in UK that promotes responsible lending is the Uncle Buck payday loans LLP. They are aware of the misconceptions about the business, the reason why they work hard to understand their customers’ needs by treating them equally as individuals. This means that they assess every application to evaluate the borrower’s capacity to pay and how he can repay based on his circumstances. Also, they are regulated and authorized by the FCA and committed to follow the Good Practice Customer Charter to offer important protection to every customer availing a short-term loan.