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to stop the deceptive practices and pay back borrowers who its says got cheated. The defendants have deceived consumers about the cost of their loans and charged more than they said they would, said Malini Mithal, the FTCs sbi personal loan emi director of financial practices. The FTC is trying to stop this deception and get refunds for consumers. While the company has won arguments in state courts that it has tribal sovereign immunity, allowing it to make loans even in states that restrict or forbid payday loans, that protection doesnt apply to the federal courts.
Court records suggest the business has made more than 165 million, charging interest rates as high as 800 percent on small loans. Borrowers have complained in droves about the lenders tactics.