A loan providing company operating over the internet has agreed to pay the FTC charges for having been involved in misleading and dishonest lending practices. For merchants, it’s critical to work with a reliable lending company, but where can you find one? Who can help you with bad credit merchant account instant approval? You’ll find answers to all these questions below.
Deceptive Lending Practices: Bad Credit Merchant Account Instant Approval
An online funding provider has recently been charged $3.85 million by the Federal Trade Commission (FTC). The thing is that the company has been allegedly engaging in misleading and dishonest practices when providing loans to customers.
The FTC reported that an Illinois-based online lender had been advertising, marketing, and offering loans to consumers since 2003. The sum varied from $1.000 to $35.000. However, the company had been involved in a number of misleading and unjust acts.
The number of consumers who complained about the unauthorized charges wasn’t small. The online lender supposedly made the customers authorize the charges and then didn’t provide a refund.
Though hundreds of clients had complaints about unauthorized charges and the company’s paperwork, and they told the company all this on a regular basis, they were left in ignorance. The lender went on charging its clients without authorization, according to the FTC. Namely, the company had taken one of the client’s monthly payment form his account 11 times in just 1 day.
With all this in mind, there’s no second thought on working with only a true funding expert when trying to get access to working capital. With a reputable alternative online lending company and payment processor like First American Merchant, you can get bad credit merchant account instant approval with ease. The rates are the cheapest in the industry. The approval is the fastest.
When the Federal Trade Commission May Charge You
As you know, the Federal Trade Commission aims to enhance competition, as well as help consumers be more protected and knowledgeable. The FTC can charge online lenders when they’re found involved in misleading and dishonest practices, as you read above. Besides, the Commission can charge online lenders if they:
- Fail to properly make credit payments by check in a timely manner
- Provide wrong payoff quotes to consumers
- Collect extra amounts even after consumers have paid the quoted payoff sum
- Violate the Telemarketing Sales Rule and the Electronic Fund Transfer Act by getting borrowers to accept the recurring automatic debit rules concerning their bank account if they want to get capital
The settlement order concerning the case under discussion prohibits this unfair lender from doing certain things. Specifically, the company can no longer take unauthorized payments, require payments via remotely created check, and misrepresent some of their services.
As you see, it’s critical to shop around when looking for an online lender. So, take the time to do some research. Don’t fail to research the lender’s name using terms like “review,” “complaint,” or “scam.” In case there’re any bad reviews, it’s a sign to stay away from the given company.