FTC Targets Payday Lender Over Wage Garnishing

Law360, New York (September 12, 2011, 2:38 PM EDT) -- The Federal Trade Commission said Monday that it had hit Payday Financial LLC with a lawsuit claiming the South Dakota-based lender bullied borrowers into paying back their debts by trying to garnish their wages without a court order.

Payday Financial, which operates payday lending outfits under a host of names, including Lakota Cash and Big Sky Cash, illegally alerted employers of their employees' supposed debts and deprived borrowers of their rights to dispute debts or make payment arrangements, the FTC alleges.

"In many cases, defendants do...
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