Utah Companies Under Heat

Posted On: September 17, 2010 at 12:46 p.m.

Filed Under: cash advance federal law federal trade commission

In Utah, several companies are now under watch by the FTC (Federal Trade Commission) for skirting around laws set in place for cash advance and other loan services. Apparently, the FTC is concerned there are some illegal practices here to garnish consumer wages. “The Federal Trade Commission has obtained a preliminary injunction against several Utah payday loan operations that it accuses of violating federal law. [[ads]] The agency, in a complaint in U.S. District Court for Utah, accuses the businesses and managers of using deceptive practices, including garnishing wages without a court order. To garnish wages in order to collect on bad debts, the companies sent letters implying they were acting under a law that allows the federal government to collect certain debts without going to court, the complaint says. Named in the lawsuit are LoanPointe LLC, of Highland, and EastBrook LLC, of Provo, along with principals and managers Joe S. Strom, Benjamin J. Lonsdale, James C. Endicott and Mark S. Lofgren. Those parties agreed to the injunction, signed last week by U.S. District Judge Dale Kimball, without admitting wrongdoing. Among other things, the injunction prohibits the companies and officials from violating loan laws and rules, requires them to provide the FTC with financial information about the companies and to preserve all relevant records” (http://www.sltrib.com/sltrib/money/49375036-79/court-loan-federal-markham.html.csp). It is unfortunate that companies find it necessary to dig out the loopholes in order to prey on consumers. This often gives the entire industry a bad wrap.