Consumer Financial Protection Bureau v. Moseley, et al., 14-00789-CV-W-DW, U.S. District Court, Western District of Missouri

Defendants, twenty entities and their three individual owners, are alleged to have engaged in an unlawful payday loan scheme with gross loan volume in excess of $100 million.  The scheme included the tactic of loan “cramming” by which Defendants obtained unauthorized access to consumers’ bank accounts and made unauthorized deposits into those accounts and thereafter sought collection on them as payday loans with high fees and interest.  Defendants are also alleged to have deceived consumers as to the true terms of payday loans and to have used consumer financial information purchased from third parties to originate online payday loans without consumers’ consent.  A Stipulated Preliminary Injunction was entered on October 3, 2014, but the case still remains pending as to all Defendants.  We have assembled substantial assets, exceeding $10 million, and are pursuing multiple potential claims against third parties.