What’s Up with Payday Loans in Kansas City?
How Many Payday Lenders in Kansas City, MO Have Been Ordered to Pay Settlements in the Past Two Years?
You give up? Four. The answer is four.
That’s right. In the past two years, four payday lenders lenders in the Kansas City-area have paid—or at least been ordered to pay—financial settlements to the US government as a result of unethical business practices.
So What Gives?
Turns out, Kansas City, MO is something of a hub for payday lenders. In Fact, Kansas City alt weekly The Pitch has called Kansas City, “the payday-lending capital of North America. These are businesses that offer short-term, high-interest loans to people who need cash and don’t have (or don’t believe they have) better options available to them.
In each of these cases, it was determined that these payday lenders were taking advantage of customers—usually through misleading terms, confusing loan agreements, and interest rates as high as 700%.
One of these lenders, so-called “payday loan mogul” and, umm, professional racecar driver, Scott Tucker, was just handed a $1.266 billion judgement in federal court. That’s the largest settlement in Federal Trade Commission (FTC) History.
Another lender, Walter Mosely Sr., whose case had not yet been decided, was arrested on the same day as Tucker on similar charges. Mosely’s lending group, by the way, was called Hydra Lenders which … come on, that isn’t even subtle. If you’re going to start a predatory lending business, maybe picking the same name as the very famous bad guys from Captain America isn’t a great idea.
Then there are Tim Coppinger and Ted Rowland, two payday lenders who also settled with the FTC over charges of deceptive and unethical lending. Coppinger was ordered to pay $32 million and Rowland was ordered to pay $22 million.
So what’s being done about it?
If you want to know what's going on with payday lending in America, check out what's happening in Kansas City, Mo.
Since Kansas City is an industry hub for payday lending, it's clearly drawing a lot of attention. For instance, it is no coincidence that the Consumer Financial Protection Bureau chose Kansas City of all places to announce their new rules to crack down on predatory payday lending. If you want to know what's going on with payday lending in America, check out what's happening in Kansas City, Mo.
And what is happening with payday loans in Kansas City right now is exactly what should be happening. The federal government is stepping in, investigating reports of abuse and issuing heavy fines to lenders who have engaged in unethical behavior. Did you know that the $1.266 billion dollar settlement against Scott Tucker the largest settlement in the FTC's history? Sounds like they’re taking this seriously.
At OppLoans, we believe in being socially responsible, and in issuing loans that our customers can afford to repay. People with less-than-perfect credit deserve better than payday loans in Kansas City, and everywhere else. So for the sake of borrowers in Kansas City, and around the country, we hope to see lots more stories like these ones in the months and years to come.
- Vockrodt, S. “KC’s dethroned online payday lenders aren’t gaming the feds anymore.” Retrieved October 12, 2016 from http://www.pitch.com/news/feature-story/article/20553808/payday-lending-kansas-city-joel-tucker
- McGuire, D., Rosen, S. Campbell, M. “KCC payday lenders Scot Tucket and Richard Moseley Sr. indicted in federal crackdown.” Retrieved October 10, 2016 from http://www.kansascity.com/news/business/article59551056.html
- Hudnall, D. “Unpacking the FTC's payday-lending settlement with Tim Coppinger and Ted Rowland.” Retrieved October 12, 2016 from http://www.pitch.com/news/article/20562219/unpacking-the-ftcs-paydaylending-settlement-with-tim-coppinger-and-ted-rowland