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But most never formally applied for any loans, according to the complaint filed by the FTC. Be the first to know. No one covers what is happening in our community better than we do.
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The withdrawals didnt go toward paying down any principal, however. And the companies allegedly sold the fake loans to debt buyers, who hounded the applicants for more money, the complaint alleges. If anyone tried to contest the unauthorized transactions, the companies would misrepresent to the banks that consumers authorized the transactions, according to the FTCs complaint. The companies even produced bogus loan applications or other phony documents as proof that people had agreed to borrow the money, the FTC said.
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