American Cash Market, Inc.

Agency: Federal Trade Commission (FTC)Washington
Description: On June 3, 2008 the Federal Trade Commission (FTC) issued a Decision and Order against this company. The agreement was entered into without admission of guilt and to settle the FTC complaint alleging the company violated the Trust in Lending Act by not disclosing the annual percentage rate (APR) along with their offer for payday loans and cash advances.

In February 2008, the FTC filed a complaint against the company following an investigation of their acts and practices. According to the complaint the company advertised they could provide payday loans and cash advances between $50 and $255 repayable including financial charges on the customers next payday. The company also listed the fees associated with each loan amount. For any of the loans advertised and the associated fees, if repayable in the typical 14 day period, the ARP would be 460%. According to the Truth in Lending Act, the annual percentage rate must be included in the advertisements.

The company is ordered to disclose all of the following when advertising, directly or indirectly, any extensions of consumer credit: the amount of down payment; number of payments or period of repayment and the amount of any payment; finance charges; the annual percentage rate (APR) along with the terms of repayment; and whether or not the ARP may be increased after completion of the credit transaction. The company must also state the rate of finance charge without stating the rate as an “annual percentage rate” and comply with all aspects of the Truth in Lending Act.

In addition, for a period of five (5) years from the date of issuance, the company is ordered to maintain and upon request make available to the FTC all records that demonstrate compliance with the order; deliver to all principals and related representatives a copy of the order and have it signed by the representative; notify the Commission , at least 30 days in advance, of any changes in the corporation that may affect compliance obligations, including dissolution, sale, merger or any other action. The settlement further orders that the company file a written report detailing how they have complied with the order with the commissioner within sixty (60) days after the date of the decision.

Upon entry the decision became final. This order will terminate on June 3, 2028 or twenty (20) years from the most recent date the FTC files a complaint for violation of this order.
Date of Action: 6/3/2008