A screenshot of the Ameriloan website

Two online lending companies linked to the Miami Nation of Oklahoma reached a $21 million settlement with the Federal Trade Commission.

The FTC accused the AMG Services and MNE Services of violating consumer protection laws by charged undisclosed and inflated fees. The companies agreed to waive $285 million in fees that were imposed on its customers.

“The settlement requires these companies to turn over millions of dollars that they took from financially-distressed consumers, and waive hundreds of millions in other charges,” Jessica Rich, the director of the Bureau of Consumer Protection at the FTC, said in a press release. “It should be self-evident that payday lenders may not describe their loans as having a certain cost and then turn around and charge consumers substantially more.”

MNE Services is owned by the Miami Nation and operates Ameriloan. AMG Services is a non-Indian owned firm based in Kansas.

Get the Story:
Payday Lending Practices Cost Two Firms $21 Million In U.S. Settlement (The Wall Street Journal 1/16)
Payday lenders linked to Miami Tribe to pay millions to settle claims of deceiving borrowers (The Oklahoman 1/17)

Also Today:
Big Data Underwriting for Payday Loans (The New York Times 1/19)