Two payday loan lead generators have agreed to settle FTC charges that their Internet advertising stated payday loan costs and repayment periods without disclosing APR information as federal law requires. The settlements require the generators to disclose APR information in similar payday loan advertisements in the future and to comply in all other respects with the Truth in Lending Act and Regulation Z. According to the FTC’s complaints, the generators stated loan costs on their websites – a $20 fee for a $100 loan, for example – but failed to disclose the APR. For a typical 14-day pay period, consumers who obtained payday loans advertised by one of the generators would pay an APR from 260% to 521% or higher, and 782% for loans advertised by the other. Click here for the FTC press release that includes links to the complaints and settlement agreements.
Alert July 01, 2008