Feds to repay $505 million to consumers stung by KC payday lender

Federal agencies will repay some portion of money lost by consumers at the hands of Scott Tucker, the Leawood, Kansas, man now serving a prison sentence for his payday lending scams.

The Federal Trade Commission and the Justice Department announced Thursday they will send out 1 million refund checks worth a combined $505 million to customers of Tucker’s businesses from 2008 to 2013.

The refund is said to be the largest in FTC history.

Tucker began serving a prison sentence earlier this year for his conviction on multiple federal charges stemming from his payday lending business that was found to have deceptive terms and illegally high interest rates.

The $2 billion business had more than 4 million customers and earned Tucker a fortune of at least $400 million.

The agencies assessed loan portfolios from subsidiaries of Tucker’s company, AMG Services, to determine customers who would receive refunds.

Read more: Kansas City Star

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