FTC Squashes Payday Site For Putting $54.95 Charge For Empty Debit Card In Fine Print

You’re broke. How would you like a $54.95 debit card? It’s empty, but if you ever do get any money, you can put up to $2,500 on it. Yay. If that doesn’t sound like a bargain, it’s no wonder that one internet marketer of payday loan referral sites was hiding the fact that he was signing you up for these dodo cards via a pre-checked checkbox on the signup form, and the FTC smacked him down for it.

Since most payday loan sites make you give them your bank account info first, he was able to reach in and snag that cash from consumers. Of course, those who are shopping for payday loans can could ill afford to lose $54.95 in the first place.

The FTC said no way jose, and he settled with them for $850,000.

Always read that fine print! You never know what new sneakiness someone is going to hide in there.

Technology Officer of PayDay Loan Marketer Settles FTC Charges That PayDay Loan Websites Were Unfair and Deceptive [FTC via Slate]