The online payday loan market just got a little tighter as the government cracks down on their practices. The Federal Trade Commission and the state of Nevada charged 10 lenders with abusive collection tactics and making false claims.

Applicants complained that many of the details were left out. They say key loan terms including; the annual percentage rate, the payment schedule, amount financed, and the total number of payments and late payments fees were not included.

When questioned, consumers say the companies called it an "oral" transaction only.Some say they paid back hundreds over the loan amount and that they had to close bank accounts to keep the companies from taking even more money.

Consumers also complained they received abusive and deceptive collection calls trying to regain access to those accounts. Some say they were threatened with jail, lawsuits and property seizure.

The companies threatened this, even though the FTC says they were not complying with payday lending laws in most states and were not licensed to make consumer loans there. According to the FTC businesses include Cash2day4u.com, HBS Services, Inc and Global Financial Services International. They are mostly located in England and Nevada.

They are being charged with unfair and deceptive collection tactics and violating the Truth in Lending Act.

Source:
Abc15.com/