Home wireless networking $ 1.3 billion reward confirmed against racing driver Scott Tucker for payday...

$ 1.3 billion reward confirmed against racing driver Scott Tucker for payday loans

4
0

SAN FRANCISCO – A U.S. appeals court on Monday upheld nearly $ 1.3 billion in compensation against a professional racing driver who was sent to jail following a conviction for deceiving consumers through of its payday loan companies.

Information provided by Scott Tucker’s companies to consumers did not accurately disclose loan terms, a three-judge panel of the 9th U.S. Court of Appeals unanimously ruled.

Judges also said a lower court did not abuse its authority by ordering Tucker and other defendants to repay nearly $ 1.3 billion.

The case was brought by the Federal Trade Commission, which accused Tucker of deceiving consumers across the United States and illegally charging them undisclosed and inflated fees.

Tucker’s attorney, Paul C. Ray, said he was reviewing the decision, but noted that one of the judges said a larger 9th Circuit panel would have to hear the case again.

Tucker, of Leawood, Kansas, is a former U.S. Le Mans Series champion who, according to prosecutors, used the proceeds from the loan activity to fund a professional car racing team. He was sentenced in January in a related criminal case to more than 16 years in prison on fraud and other charges.

Prosecutors said he made billions of dollars over more than a decade exploiting financially troubled Americans, charging them illegal interest rates that sometimes exceeded 1,000 percent.

Over a 15-year period, more than 1% of the American population fell victim to Tucker’s loan business, U.S. District Judge P. Kevin Castel said at Tucker’s sentencing hearing in January.

The companies he operated used the names Ameriloan, Cash Advance, OneClickCash, Preferred Cash Loans, United Cash Loans, US FastCash, 500 FastCash, Advantage Cash Services and Star Cash Processing, according to prosecutors.

The 9th Circuit did not rule on Tucker’s criminal conviction.

The panel said the loan terms provided by Tucker’s companies were misleading because they did not clearly disclose that loans would automatically renew unless consumers act. The renewals resulted in additional finance charges of up to $ 585 in additional payments on a $ 300 loan, the appeals court panel said.


Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here