This article will discuss the fate of AMG Services- Scott payday loans company. This company was convinced that it committed fraud to its consumers. US authorities have sanctioned the company as well as its owner, Scott Tucker. Well, there are several things you might want to know about this case which happened in September 2016. If you wish to find out more, be sure to read this article to the end, will you?
What it is
As mentioned earlier, in 2016, the Federal Trade Commission won a civil judgment against the then-massive payday loan company owned by Scott Tucker. AMG Services, along with other companies owned by him, was sentenced guilty of making a fraud to people who used their services in the past. The court made several decisions, but the most interesting would be the one which obligated he convicts, especially the CEO, to pay refunds to their consumers who suffer from their mischievous act. Ultimately, the company was forced to shut down as their boss had to spend his time behind the cold bars of a federal prison in the US- it is still yet to be known where the location of his imprisonment is. However, it is highly possible that the owner of the Scott payday loans company is now imprisoned in a federal jail located in Kansas. The man, who was also a racecar champion in his leisure time, was forced to spend more than 16 years of prison time, thanks to the decision of the court of Kansas City.
We all now have figured out that the company that the former racer owned was now shut down since it was convinced of fraud, but what about the detail of the fraud itself? The company was said to have committed the worst fraud in the financial history of the United States. Well, now that you have known the detail of the case, it is time to figure out the fraud. The jurors of the court established two years ago found out that Scott Tucker had purposely ordered his payday loan company to charge excessive amounts of loans that the borrowers needed to pay for his company in return after they have received the loan the applied. Of course, he understood that most of the states in the country have tough laws which restrict lenders to apply unjust charges, but he understood better that most of us.
Well, since it would be kind of difficult for the man to make fraud, then, how did manage to do it anyway? Well, although most countries do not allow lenders to charge way more than the loan should be charged, such laws do not apply to the Native Americans who lived in the states of Oklahoma and Nebraska. These states, unfortunately, did not have any strong laws which regulated mischievous lenders by the time this case happened. Payday loans with unreasonably high interest rates were common to be found in the states and Tucker intentionally targeted the Native Americans who were looking for loans! Now, you understand the case of the Scott payday loans company.