A federal court has ordered a halt to certain practices by seven U.S.-based companies and an individual that allegedly operated as part of an international Internet payday lending operation, according to the Federal Trade Commission.
Named as defendants were: Leads Globa Inc., Waterfront Investments Inc., ACH Cash Inc., HBS Services Inc., Lotus Leads, Inc. First4Leads Inc., and Rovinge International Inc. and Jim Harris, the Commission said.
Also charged in the complaint but not named in the order are four U.K.-based companies operating in the U.S. as Cash Today, Route 66 Funding, Global Financial Services International Ltd., and Interim Cash, Ltd., and their principals, Aaron Gershfield and Ivor Gershfield, according to the FTC.
They were charged with failing to disclose key loan terms and using abusive and deceptive collection tactics in violation of federal and state laws, the FTC continued.
The U.S.-based companies and their principal agreed to the court order, which will remain in effect pending trial, the Commission noted.
The FTC and state of Nevada seek to permanently bar the defendants from future violations and make them give up the money they obtained using the allegedly illegal collection tactics, according to the Commission.
The companies allegedly offered loans of $500 or less within 24 hours without requiring a credit check, proof of income, or documentation. Consumers were told that they qualified for a loan that had to be repaid by their next payday with a fee ranging from $35 to $80, and that if the loan was not repaid by then, it would be extended automatically for an extra fee that would be debited from the consumer
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