WASHINGTON, July 8, 2015 — The Online Lenders Alliance (OLA), today praised the Federal Trade Commission’s (FTC) action against a group of online lenders accused of funding loans that consumers never approved then making unauthorized debits from their bank accounts.
“Online lenders that defraud consumers should be prosecuted and put out of business,” said Lisa McGreevy, President and CEO of OLA. “We applaud the FTC’s action against companies that were clearly involved in an automatic funding scheme where consumers are given loans they never approved then bilked for payments they never authorized. Their treatment of consumers is deplorable.”
Following the FTC’s announcement of its complaint 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 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 an resounding success, and has helped hundreds of thousands of consumers find responsible lenders to meet their short-term credit needs,” said McGreevy.
The FTC case was filed in the United States District Court, Western District of Missouri against sixteen companies, none of which are members of OLA. The FTC’s September 2014 complaint can be viewed here, and the settlement announced yesterday can be viewed here.
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.