Facts

The Federal Trade Commission brought an action under the Federal Trade Commission Act, the Truth in Lending Act, and the Electronic Fund Transfer Act relating to high-fee, short-term payday loans offered by defendant Timothy A. Coppinger, and his companies CWB Services LLC, Orion Services LLC, Sandpoint Capital LLC, Sandpoint LLC, Basseterre Capital LLC (Nevis), Basseterre Capital LLC (Delaware), Namakan Capital LLC (Nevis), and Namakan Capital LLC.

The FTC also brought the action against defendant Frampton T. Rowland III, and his companies Vandelier Group LLC, Anasazi Group LLC, Anasazi Services LLC, Longboat Group LLC d/b/a Cutter Group, Oread Group LLC, also d/b/a Mass Street Group, and St. Armands Group LLC.

PLAINTIFF'S CONTENTIONS:
The FTC contended that defendants falsely represented that consumers had completed loan applications that authorized the issuance of loan proceeds to the consumer, and that the defendants allegedly sold the loans to debt collectors who then harassed customers for repayment. The FTC also contended that defendants misrepresented the cost of loans to consumers who sought loans.

Result

Pursuant to the settlement reached between the parties, defendants are prohibited from being in the consumer lending business, making materially false misrepresentations about any good or service, and from billing consumers or debiting their accounts without their consent. Should the defendants fail to comply with the terms of the agreement, defendant Coppinger and his companies will pay approximately $32 million, and defendant Rowland and his companies will pay approximately $22 million.

Other Information

FILING DATE: Sept. 5, 2014.