FTC Distributes Payday Support Center Money to Victims
In its press release, the Federal Trade Commission announced that it is distributing more than $148,000 two victims of Payday Support Center, a debt relief scam that focused on consumers who owed payday loans. Payday Support Center offered a “hardship program” to supposedly resolve outstanding payday loans. Allegedly, Payday Support Center had people send money to them instead of the payday lenders, but Payday Support Center never actually forwarded the payments. The result? Consumers paid a lot of money to Payday Support Center, yet ended up owing even more to the original lenders.
Last September, the FTC finalized orders that banned Payday Support Center from conducting any activities related to debt relief and barred them from profiting from consumers’ personal information. Although the judgment was for $23.7 million, most of that amount was suspended due to the defendants’ inability to pay.
Victims of the scam are slated to receive an average of $264 each. Consumers entitled to refunds who have questions can reach the refund administrator at 888-279-4212.