Feds to return $505M from Tucker’s payday loan scheme
KANSAS CITY, Mo. (AP) — Federal officials are mailing more than 1 million checks worth a combined $505 million to consumers that former pro racecar driver Scott Tucker swindled through a payday lending scheme.
The Kansas City Star reports that the Federal Trade Commission and the Justice Department announced the refunds Thursday. The agencies evaluated loan portfolios from seven of Tucker’s brands under his company, AMG Services — 500FastCash, Advantage Cash Services, Ameriloan, OneClickCash, Star Cash Processing, UnitedCashLoans and USFastCash — to find consumers who took the short-term loans.
Tucker, of Leawood, Kansas, is among those convicted of running a payday lending enterprise that used indigenous tribes as fronts to charge predatory interest rates. He began serving a 16-year, eight-month prison sentence earlier this year.