Payday Loan Marketing Law and FTC Investigations

payday loan marketing law
Payday loan marketing often invites FTC eyeballs. Keep calm and read this if they’ve focused on you.

The Federal Trade Commission forced Payday loan facilitator, Swish Marketing, to forfeit about $4 million dollars as punishment for using deceptive marketing techniques. The FTC alleged there was “reason to believe” the Internet advertisers violated payday loan marketing rules on websites like and

Payday Loan Marketing Law: FTC Lobs Unfair and Deceptive Marketing Accusations At Payday Loan Websites

Typically, payday loan websites require users to fill out a financial application that asks for personally identifiable data, such as social security numbers, drivers’ license data, and bank account information. Various FTC and FCC standards prohibit companies from sharing such data without user consent.

Customers, however, began reporting a payday loan operation for unauthorized bank account debits, which triggered an FTC investigation.

The FTC ultimately ruled that the site design and message were misleading, unfair, deceptive, and therefore contrary to regulations.

What Happens Next In This Payday Loan Marketing Law Case?

It’s important to remember that the FTC investigates first. If they don’t find anything — nothing happens. In this case, the claims have been made. Now it’s up to a judicial body to determine if the complaints carry weight.

Not All Payday Loan Sites Are Breaking The Law; But The FTC Will Go After Them Anyway

Sure, some online operations are shady; but many aren’t.

If you’re a payday loan operator who gets caught in the FTC’s crosshatch, get an Internet-savvy lawyer on your side.

Aaron Kelly is a preeminent Internet law attorney. Contact him today with any of your online marketing legal questions.

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