Federal Trade Commission (FTC) v. Loanpointe
United States District Court for the District of Utah
2022 WL 4348304 (2011)
LoanPointe, LLC (defendant) ran a payday-loan website where borrowers agreed online that LoanPointe could garnish their pay for delinquent loans. When a borrower fell behind, LoanPointe sent the borrower's employer a garnishment package along with a letter falsely claiming LoanPointe was federally authorized to garnish wages and that the borrower had already been given a chance to dispute the debt -- neither of which was true. The FTC (plaintiff) sued, alleging deceptive and unfair practices under the FTC Act, and moved for summary judgment.
Whether a lender violates federal law by sending employers false statements about its authority to garnish wages, and by disclosing a borrower's debt to the employer without the borrower's knowledge or consent.