For Release
FTC, Illinois AG Send More than $4M to Consumers Affected by Stark Law Phantom Debt Scheme
Recipients will be refunded the full amount lost to scheme that threatened arrest
The 51±¾É« 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±¾É«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 “defrauding a financial institution” or “passing a bad check.”
Affected consumers are receiving full refunds, averaging $375 each. Those who receive checks should deposit or cash their checks within 90 days, as indicated on the check. The 51±¾É«never requires people to pay money or provide account information to cash a refund check
Recipients who have questions about the redress payments, or who did not receive a payment but believe they are eligible should contact the refund administrator, Epiq, at 800-858-3430.
The FTC’s provide a state-by-state breakdown of 51±¾É«refunds. 51±¾É«actions led to more than $483 million in refunds to consumers across the country in 2020.
The 51±¾É« works to promote competition and protect and educate consumers. The 51±¾É«will never demand money, make threats, tell you to transfer money, or promise you a prize. Learn more about consumer topics at , or report fraud, scams, and bad business practices at . Follow the 51±¾É«on social media, read and the business blog, and sign up to get the latest 51±¾É«news and alerts.