The Federal Trade Commission announced On Thursday (May 19), 690,000 checks worth over $152 million will be mailed to customers scammed by a payday loan scam scheme operated by AMG Services and the company’s owner, Scott Tucker.
This is done through the FTC’s Refund Administrator. This wave of reviews is the second for this case, and upon completion, the FTC will have issued more than $535 million in refunds to affected customers.
According to the FTC press release, the restitutions were spurred by a criminal case filed by the Justice Department. Settlements with other defendants reached in the Supreme Court overturned the monetary order obtained by the FTC in its April 2021 civil case against Tucker.
The FTC sued AMG in 2012, alleging that AMG and its operators falsely claimed they would charge borrowers for the loan amount in addition to a one-time financing fee.
That wasn’t the case – instead, the defendants made numerous withdrawals from customers’ bank accounts, adding new funding fees with each withdrawal, causing consumers to pay more for the loans than they agreed to.
Then, in 2017, the United States Attorney’s Office for the Southern District of New York issued criminal convictions against Tucker and his attorney, Timothy Muir.
In other news regarding the FTC, U.S. Sen. Ron Wyden, D-Ore., said he would like the FTC to investigate whether the identity verification service provider ID.me, used by federal and state agencies, misled people about using facial recognition .
Continue reading: Wyden, Oregon Senator, is asking the FTC to investigate ID.me for facial recognition fraud
Wyden, along with other senators, wrote a letter to try to investigate the company.
He claimed the company has claimed in blog posts and other statements that its “one-to-one” facial recognition technology is better than “one-to-many” facial recognition, which combines a person’s photo with a digital lineup of other peoples is compared ‘ photos.