A couple of weeks ago, Reuters stated that AMG Services, the Overland ParkвЂ“based online payday-loan behemoth, was indeed subpoenaed by a federal grand jury. The organization, based on that report, will be examined for violations offering cable fraudulence, racketeering and cash laundering.
ThatвЂ™s no shock that is great. AMG Services has grown to become a textbook exemplar for the notoriously misleading online-lending industry. This really isnвЂ™t even the very first example of AMG operating afoul of federal authorities; the Federal Trade Commission filed case against AMG in 2012, accusing it of perhaps maybe perhaps not disclosing the genuine expenses of their loans and threatening borrowers through the collection procedure.
this means that one particular whom run these online businesses that are payday ultimately visit prison.
whilst the Pitch has reported, there are lots of people in Kansas City whom run or have actually operated such organizations вЂ” the KC metro is really a hub that is national the industry. The race-car-driving puppetmaster of AMG but also bad news for other people in town who have cribbed his business model so itвЂ™s not just bad news for Scott Tucker.
One operation that is localвЂ™s ripe for federal scrutiny is LTS Management Services, which during the last ten years was expanding and gathering short-term payday loans online in downtown Kansas City, at 908 Baltimore. (Other names linked to the business consist of Loan Shop on line; Evergreen Capital Partners; DMS advertising; and, of late, Glacier Management. Continue Reading