A U.S. district court has stopped an online payday lenderÂ that was suspected of using customers’ financial information to withdraw money from their bank accounts in increments of $30 without their permission.
The Federal Trade Commission alleged that those heading the operation, in addition to the five companies they managed, gathered consumersâ€™ names, Social Security numbers, bank routing numbers, and bank account numbers. All of this information would be enough to grant them access to consumersâ€™ checking accounts.
It is estimated that consumers have lost more than $5 million. According to the FTC allegations, the defendants promised to help consumers find loans. However, they withdrew money from their accounts instead.