Payday Lenders Caught Not Disclosing Interest Rates

American Cash Market Inc., and Anderson Payday Loans, both based in California, and CashPro d/b/a MakePaydayToday.com, based in Nevada, stated their loan costs on their Web sites such as a $20 fee for a $100 loan. But they didn't disclose the entire costs. For example, they failed to disclose the annual percentage rate (APR) for a typical 14 day pay period from American Cash Market would be 460 percent. Loans from CashPro would have a 520 percent APR, and loans from Anderson Payday Loans would have an APR ranging from 521 percent to 782 percent.

Unfortunately for the Internet loan sharks, the Federal Trade Commission noticed.