Payday lender owes $132 million in restitution, federal agency says

The Consumer Financial Protection Bureau has asked a federal judge to order $132.6 million in restitution against a payday loan company once run by James Carnes, a businessman from Mission Hills, Kan.

The agency also seeks $11.7 million in civil penalties from Carnes’ company, Integrity Advance LLC, and a $7.8 million in civil penalties from Carnes.

In November, the Consumer Financial Protection Bureau accused Carnes and Integrity Advance of running a consumer loan business that deceived customers about the true costs of their loans.

The bureau alleges that Integrity Advance presented consumers with loan terms that misrepresented the true cost of repaying what they borrowed. The agency also claims the company drew money out of customers’ bank accounts through what’s known as “remotely created checks” after customers instructed their banks to halt automatic debits by Integrity Advance.

Attorneys for Carnes and Integrity Advance have responded in court filings that they should owe nothing. Carnes could not be reached for comment.

Read more: Kansas City Star

Tags:, , , ,

Leave a Reply

Have you heard?

Missouri Business Alert is participating in CoMoGives2019!

Find out how we plan to use your gift to enhance training and programming for our students