As a bankruptcy lawyer, I see many hard working people who fall prey to these internet payday loans. And they are afraid if they stop paying the loans that somehow the consumer had done something illegal. So I’m happy to have proof of what I tell them. In most cases it’s the internet payday loan company are the ones who have broken the law.
One common scam was claiming that the internet payday loans did not have to follow state law, because the payday loans were made by Indian Tribes. Scott Tucker, who set up most of those Indian Tribe payday loans, got fined a billion dollars (good luck actually collecting that) and sentenced to 16 years in Federal prison.
Scott Tucker, king of the internet payday loan outfits, also was a professional race car driver. He won’t be able to do that during his 16 year prison sentence.
Last October the Federal Trade Commission obtained a federal court judgment against Tucker for $1.266 billion dollars.
Next, Scott Tucker was convicted of 14 federal felonies in his internet payday loan empire.
Then he was sentenced to 16 years, 8 months.