Payday Loan Fraud Scheme
Online Payday Loan Company Stole Millions of Dollars
Without Their Victims Knowing about it
In July we wrote an article, High Interest Rates with Payday Loans. It’s something that many have faced. The one thing that no one ever saw coming was having unauthorized accounts opened up by payday loan companies in the Kansas City area.
The FTC has taken action to stop this massive payday loan fraud scheme. The charges from this terrible fraud were filed last year alleging that Timothy A. Copplinger and Frampton T Rowland III of Johnson County, were illegally setting up accounts for people without consent. The report alleges that Copplinger and Rowland would buy a list of names in the amount of around $32 million and set up numerous accounts from this list.
How This Kansas City Based Payday Loan Company Stole Money
In an 11 month time period the FTC is alleging that Rowland and Copplinger made about $28 million in payday loans. They extracted more than $46.5 million in return.
The defendants also fabricated the costs of their services and extracted finance charges from their borrowers’ bank accounts every other week. This was done without ever applying any of the payments to the loan principal. The payment amounts were only going to interest rates. Once again, this was being done without the consent of the victims in this case. This is what the lawsuit alleges.
Castle Law Can Stop The Burden of Debt by Payday Loans
Filing Chapter 7 or Chapter 13 Has Many Benefits
Castle Law Office understands that during the holiday season finances can be stretched to the limit. If you are trapped by the burden of debt, call us. We understand that payday loans are fast and you can get money right away. We also want to warn you that it comes at a very high interest cost. The average interest rate is 400%. Filing Chapter 7 or Chapter 13 does not have the interest that a payday loan has. The debt can be wiped away.
Before you finalize everything with a payday loan company call us at 816-842-6200 or contact us for a free consultation. We will discuss your financial situation. You’ll be glad you did!
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