WASHINGTON, September 16, 2015 – The Online Lenders Alliance (OLA) today praised the Federal Trade Commission’s (FTC) resolution of a complaint it filed against Broadway Global Master Inc. and In-Arabia Solutions Inc. which alleged that people working for the defendant “harassed consumers into paying a bogus debt.”
According to the terms of the settlement, the operators will be banned from the debt collection business, imposes a judgment of more than $4.3 million and-in a separate criminal proceeding-Kirit Patel was sentenced to a one-year prison term after pleaded guilty to mail and wire fraud charges brought by the U.S. Department of Justice based on this case.
“The FTC sanctions are thorough and justified and we are delighted that the Commission and the courts have taken such aggressive and decisive action,” said Lisa McGreevy, President and CEO of OLA. “We are particularly pleased with the one-year jail term for the leader of this alleged scam. These are sanctions with teeth that will serve as a strong deterrent and make people think twice before taking advantage of consumers through fraudulent schemes.”
Last September, OLA launched its award-winning “look for the seal” campaign to educate consumers about responsible online lenders, and to arm them with the tools they need to avoid fraudsters. The “look for the seal” campaign has reached over 9 million consumers with nearly 26,000 using the dedicated website since last November.
The “look for the seal” consumer campaign was awarded by the American Society of Association Executive’s (ASAE) “Power of A (association) Award,” the industry’s highest honor. The Power of A Awards recognize outstanding accomplishments of associations and industry professionals for their efforts to enrich lives, create a competitive workforce, prepare society for the future, drive innovation and make a better world.
“The look for the seal campaign has been a resounding success, and has helped hundreds of thousands of consumers find responsible lenders to meet their short-term credit needs,” said McGreevy.
The Online Lenders Alliance is a professional trade organization representing the growing industry of companies offering consumers small, short-term loans online. OLA member companies abide by a list of Best Practices and Code of Conduct to ensure that customers are fully informed and fairly treated.