Judge says Scott Tucker, other payday lenders owe $1.26 billion

A federal judge in Nevada has ordered Leawood, Kan.-based businessman Scott Tucker and others to pay the Federal Trade Commission more than $1.26 billion after finding that they ran a payday loan enterprise that systematically deceived its consumers.

U.S. District Court of Nevada Judge Gloria Navarro’s judgment, posted late on Friday, also bars Tucker from any future involvement in the consumer lending business.

The judgment found that consumers of Tucker’s payday loan businesses were harmed because of the misleading loan terms that the FTC said caused recipients of a $300 loan to be on the hook for $975 due to poorly crafted loan disclosures and automatic repayment schedules.

The judgment comes as the largest penalty to date among several payday loan figures in the Kansas City area, which has become a nerve center for the industry.

Tucker’s attorney was not immediately available for comment on Saturday. He had denied wrongdoing in the FTC case and has pleaded not guilty to the criminal charges against him. That trial is scheduled for April 2017.

Read more: Kansas City Star


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