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Lead Express, Harvest Moon Financial and others repeated drew interest-only charges, leaving consumers to pay more than promised

payday loan

May 22, 2020 – The Federal Trade Commission (FTC) has charged Lead Express, Harvest Moon Financial, Gentle Breeze Online, and Green Stream Lending with deceiving its customers by overcharging millions of dollars and repeatedly withdrawing money from customers bank accounts, without their permission.

Post from the FTC: According to the FTC, the 11 defendants, through Internet websites and telemarketing, and operating under the names Harvest Moon Financial, Gentle Breeze Online, and Green Stream Lending, used deceptive marketing tactics to convince consumers that their loans would be repaid in a fixed number of payments. In fact, in many instances, the FTC alleges, consumers found that long after the promised number of payments had been made, the defendants had applied their funds to finance charges only and were continuing to make regular finance-charge only withdrawals from their checking accounts.

In addition, the FTC charges that the defendants failed to make required loan disclosures, made recurring withdrawals from consumers’ bank accounts without proper authorization, and illegally used remotely created checks.

“Harvest Moon bled consumers dry, by promising a single payment payday loan, but then automatically debiting consumers’ bank accounts for finance charges every two weeks, in perpetuity,” said Andrew Smith, Director of the FTC’s Bureau of Consumer Protection.

The FTC charges the defendants with violating the FTC Act, the Telemarketing Sales Rule, the Truth in Lending Act and Regulation Z, and the Electronic Funds Transfer Act and Regulation E. The defendants named in the case are: Lead Express, Inc.; Camel Coins, Inc.; Sea Mirror, Inc,; Naito Corp.; Kotobuki Marketing, Inc.; Ebisu Marketing, Inc.; Hotei Marketing, Inc.; Daikoku Marketing, Inc.; La Posta Tribal Lending Enterprise; Takehisa Naito; and Keishi Ikeda.

The Commission vote authorizing the staff to file the complaint was 5-0. The U.S. District Court for the District of Nevada entered the temporary restraining order on May 19, 2020.

The FTC has information for consumers about payday loans, including alternative options and information for military consumers.

payday loan

MUSINGS FROM DIANE:

payday loanThose having financial challenges are easy targets for creeps, like payday lenders.  These lenders will open businesses, create loans and take innocent peoples hard-earned money.  When they get in trouble (like Harvest Moon) then they close that door, only to open another door the next day.  Avoiding using payday loan companies, it is the beginning of the end.  Look for other options – does your bank offer a short-term loan, can you take another temporary job, can you adjust why you are spending more than you are earning?  I know the solution is not simple, but please ask for help from someone who is interested in your best interests.  Never borrow money from your retirement accounts, unless you talk to someone (like me) who can explain the consequences.

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Diane L. Drain

Diane L. Drain, bankruptcy attorney, retired law professor, mentor and community spokesperson.

About Diane Drain:

Diane is a well respected Arizona bankruptcy and foreclosure attorney. As a retired law professor, she believes in offering everyone, not just her clients, advice about bankruptcy and Arizona foreclosure laws. Diane is also a mentor to hundreds of Arizona attorneys.

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