A couple of weeks ago, Reuters stated that AMG Services, the Overland ParkвЂ“based online payday-loan behemoth, have been subpoenaed with a federal grand jury. The business, based on that report, will be examined for violations such as cable fraudulence, money and racketeering laundering.
ThatвЂ™s no great surprise. AMG Services happens to be a textbook exemplar associated with notoriously misleading industry that is online-lending. This really isnвЂ™t even the very first example of AMG operating afoul of federal authorities; the Federal Trade Commission filed case against AMG in 2012, accusing it of perhaps perhaps not disclosing the actual expenses of the loans and threatening borrowers through the collection procedure.
this means that one particular whom operate these online businesses that are payday sooner or later head to prison.
since the Pitch has reported, there are many people in Kansas City whom operate or have operated such organizations вЂ” the KC metro is a hub that is national the industry. The race-car-driving puppetmaster of AMG but also bad news for other people in town who have cribbed his business model so itвЂ™s not just bad news for Scott Tucker.
One local operation thatвЂ™s ripe for federal scrutiny is LTS Management Services, which the past ten years was expanding and gathering short-term online pay day loans in downtown Kansas City, at 908 Baltimore. (Other names from the business include Loan Shop on the web; Evergreen Capital Partners; DMS advertising; and, of late, Glacier Management.