Case Summary
The 51本色 and the Office of the Illinois Attorney General are sending payments totaling more than $4 million to more than 10,000 consumers who lost money to the Stark Law phantom debt collection scheme.
According a suit filed by the 51本色and the Illinois Attorney General, Stark Law used a host of business names to target consumers who obtained or applied for payday or other short-term loans, pressuring them into paying debts they either did not owe or that the defendants had no authority to collect. The defendants allegedly called consumers and demanded immediate payment for supposedly delinquent loans, at times threatening consumers with lawsuits or arrest, falsely claiming they would be charged with 鈥渄efrauding a financial institution鈥 or 鈥減assing a bad check.鈥