• Tue. May 11th, 2021

FTC Halts Deceptive Payday Lender, Harvest Moon Financial, Gentle Breeze Online, Green Stream Lending

FTC Halts Deceptive Payday Lender, Harvest Moon Financial, Gentle Breeze Online, Green Stream Lending

FTC Halts Deceptive Payday Lender, Harvest Moon Financial, Gentle Breeze Online, Green Stream Lending That Took Millions From Consumers’ Accounts Without Authorization

Defendants drew repeated interest-only charges, leaving consumers to pay more than promised

Washington, DC (STL.News) The Federal Trade Commission has charged a payday lending enterprise with deceptively overcharging consumers millions of dollars and withdrawing money repeatedly from consumers’ bank accounts without their permission.  A federal court has entered a temporary restraining order halting the operation and freezing the defendants’ assets, at the FTC’s request.

According to the FTC, the 11 defendants, through Internet websites and telemarketing, and operating under the names Harvest Moon Financial, Gentle Breeze Online, and Green Stream Lending, used deceptive marketing tactics to convince consumers that their loans would be repaid in a fixed number of payments.  In fact, in many instances, the FTC alleges, consumers found that long after the promised number of payments had been made, the defendants had applied their funds to finance charges only and were continuing to make regular finance-charge only withdrawals from their checking accounts.

In addition, the FTC charges that the defendants failed to make required loan disclosures, made recurring withdrawals from consumers’ bank accounts without proper authorization, and illegally used remotely created checks.

“Harvest Moon bled consumers dry, by promising a single payment payday loan, but then automatically debiting consumers’ bank accounts for finance charges every two weeks, in perpetuity,” said Andrew Smith, Director of the FTC’s Bureau of Consumer Protection.

The FTC charges the defendants with violating the FTC Act, the Telemarketing Sales Rule, the Truth in Lending Act and Regulation Z, and the Electronic Funds Transfer Act and Regulation E. The defendants named in the case are: Lead Express, Inc.; Camel Coins, Inc.; Sea Mirror, Inc,; Naito Corp.; Kotobuki Marketing, Inc.; Ebisu Marketing, Inc.; Hotei Marketing, Inc.; Daikoku Marketing, Inc.; La Posta Tribal Lending Enterprise; Takehisa Naito; and Keishi Ikeda.

The Commission vote authorizing the staff to file the complaint was 5-0.  The U.S. District Court for the District of Nevada entered the temporary restraining order on May 19, 2020.

The FTC has information for consumers about payday loans, including alternative options and information for military consumers.

Marty Smith

Marty Smith

Marty Smith is the acting Editor in Chief as well as the founder of STL.News, DirectSourceNews.org, and St. Louis Restaurant Review. Additionally, Smith is the IT Manager responsible for STL.News and affiliate sites. Smith has created multiple aggregator sites to manage the large amount of content used to select which content to published on STL.News. As Editor in Chief, Smith is responsible for the content posted on the network with the help of the publishing team, which is located around the globe.