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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsIndian tribe ‘employee’ thrives on payday loans
While Missouris many brick-and-mortar payday loan shops have been the focus of public ire and reform efforts over the last few years, an even more insidious operation has thrived across the state line in Overland Park.
According to a class-action suit, Johnson County businessman Scott Tucker for years has presided over a vast web of Internet payday loan operations. A separate lawsuit brought by the Federal Trade Commission alleges that those operations seek to deceive and entrap consumers.
Tucker, 50, seeks glory on the auto racing circuit and flies between his home in Leawoods pricey Hallbrook neighborhood to his $8 million vacation home in Aspen, Colo., on a private Learjet.
According to the FTC lawsuit, Tucker and affiliated businesses and individuals make short-term loans. But instead of claiming a one-time finance charge on an agreed-upon date, the companies gain access to consumers bank accounts and make multiple withdrawals, assessing a new finance charge every time.
In a typical example, a consumer borrowed $300 and received a loan disclosure stating she would pay a $90 finance charge. So the loan should have cost $390. By the time the woman closed down her account, it had been drained of $735.
Read more here: http://www.kansascity.com/2012/05/17/3616045/indian-tribe-employee-thrives.html#storylink=cpy
bluestate10
(10,942 posts)What he did sounds republican.
Angry Dragon
(36,693 posts)Bolo Boffin
(23,796 posts)http://www.iwatchnews.org/2011/09/28/6656/race-car-driver-scott-tucker-drew-elaborate-facade-around-his-payday-loan-businesses
That's a two-part series from September 2011 on this with a lot more details about this guy. A quote from the second article:
Now with the tribal immunity shield, some states say they dont have the resources or legal expertise to fight people like Tucker. Deborah Bortner of the Washington Department of Financial Institutions said she consulted with attorneys about tribal payday lenders, who told her we really dont have a leg to stand on.
There is hope of federal action. Tribal immunity cannot stop federal regulators, who have the right to investigate and take action against tribes. And in the financial reform act passed last year, Congress gave the new Consumer Financial Protection Bureau the explicit power to regulate payday loans.
Without a confirmed director, the new consumer agency is limited in its powers. Still, the agency is expected to make oversight of payday loans a top priority. Consumer lawyers whove talked to the bureau officials say that the agency is especially concerned about lenders who flout the law, including payday lenders who claim to be affiliated with tribes.
Of course that was back in September. Now there is a director for the CFPB. And their first item of business after Richard Cordray was sworn in? Payday loan businesses.
Thank you, President Obama.
crazyfrog123
(1 post)Mattsand
(1 post)Last edited Sun Jun 24, 2012, 12:51 PM - Edit history (2)
There is an interesting Bloomberg article on this topic actually.
http://www.bloomberg.com/news/2012-06-04/payday-lenders-and-indian-tribes-evading-laws-draw-scrutiny-1-.html
There are also several community based lending projects underway that offer lower rates. I'm involved in one that ranks payday loans online to help people make more educated choices.