FTC sues brother of Leawood payday loan magnate for selling fake debt

The Federal Trade Commission has accused Johnson County businessman Joel Tucker in a lawsuit of selling counterfeit debt portfolios to collection agencies and causing consumers to pay up on loans they did not owe.

The FTC filed suit in federal court in Kansas City, Kan., on Friday, asking a judge to grant a permanent injunction to force Tucker and business entities he purportedly controls to stop selling these allegedly fake debt packages. Those business entities are SQ Capital and JT Holdings, both of which have addresses in Mission, Kansas; and HPD LLC, based in Wyoming.

Tucker, who could not be reached for comment, is the brother of Scott Tucker, the Leawood, Kansas, businessman and professional race car driver accused of running an illegal $2 billion payday loan operation.

Legitimate debt portfolios come from companies who have not received payments from consumers and who decide to sell those debts, often for pennies on the dollar, to third-party debt collectors. Those collectors, then, try to get the consumers to pay the remaining balance.

The FTC said Joel Tucker sold bogus payday loan debt portfolios containing consumers’ Social Security numbers, bank account information, loan amounts and balances and repayment histories to third-party debt collectors.

Read more: Kansas City Star

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