FTC BANS MERCHANT CASH ADVANCE PROVIDER FROM BUSINESS

FTC BANS MERCHANT CASH ADVANCE PROVIDER FROM BUSINESS

The Federal Trade Commission (“FTC”) has entered into a consent order with a commercial lender and one individual owner to resolve two related charges that the lender, along with one related business defendant and three individual defendants violated: (i) Section 5 of the Federal Trade Commission Act (prohibiting unfair and deceptive acts and practices) by requiring terms it expressly represented it did not require, collecting more than what was owed and using unjustified confessions of judgments and threats on borrowers; and (ii) Section 522 of the Gramm-Leach-Bliley Act (prohibiting fraudulently obtaining customer information of a financial information) by fraudulently obtaining borrowers’ bank information to effect the alleged unfair and deceptive practices. The action against the other three defendants remains ongoing. Read More