Racer Being Sued For His Part in Payday Loan Scheme
Scott Tucker and his company are part of a federal lawsuit.
Web2Carz Senior Writer
Published: April 14th, 2012
Tucker started the payday-lending business over a decade ago, and he's gotten rich because of it.
acer Scott Tucker is under federal investigation due to his involvement in a payday-lending scheme.
Tucker—a two-time American Le Mans champion—is a defendant in a federal lawsuit against AMG Services, which is based in Overland Park, Kan. Tucker lives in Kansas City, Kan.
Tucker started the payday-lending business over a decade ago, and he's gotten rich because of it. He's also been the target of many consumer complaints for deceptive practices.
State investigators began looking into the business, and Tucker planned to sell the business to three different Indian tribes. He'd still be in charge and collect any profits.
This has allowed Tucker to win arguments in court that the company enjoys tribal immunity, but that protection doesn't hold under federal law, and the Federal Trade Commission is now involved.
Tucker's company stand accused of misleading customers about how much they'd have to pay back on their loans. For example, customers thought that they'd need to pay only $90 back on a $300 loan, but the company automatically renewed the loans, leading to a consumer paying $975 over the life of the loan.
That sounds pretty shady to us. We'll keep you updated on the outcome.