The CFPB sued payday lender Hydra Group and several of its executives for allegedly using “information bought from online lead generators to access consumers’ checking accounts to illegally deposit payday loans and withdraw fees without consent.” Hydra Group issued “$97 million in payday loans and collected $115 million from consumers in return.” Additionally, Hydra Group was “accused of funding unapproved loans for consumers who did not request them, then taking payments directly from checking accounts without approval.”

• In case number 4:14-cv-00789-DW filed in U.S. District Court Western Division of Missouri Western Division, listed defendants as Hydra Group, Richard Moseley, Sr., Richard Moseley, Jr. and Christopher Randazzo. Hydra Group was accused of using “information bought from online lead generators to access consumers’ checking accounts to illegally deposit payday loans and withdraw fees without consent.” They then “used falsified loan documents to claim that the consumers had agreed to the phony online payday loans.” [Darren Waggoner, “CFPB, FTC Sue Separate Payday Lending Operations,” Payments Source, 09/17/14]

• Hydra Group consisted of “roughly 20 businesses” including “SSM Group, Hydra Financial Limited Funds, PCMO Services, and Piggycash Online Holdings.” While the majority of the entities were based in Kansas City, Missouri, several were incorporated internationally, including “New Zealand or the Commonwealth of St. Kitts and Nevis.” [Darren Waggoner, “CFPB, FTC Sue Separate Payday Lending Operations,”Payments Source, 09/17/14]

• The scheme resulted in Hydra Group issuing “$97 million in payday loans” and collecting “$115 million from consumers in return.” Additionally, Hydra Group was “accused of funding unapproved loans for consumers who did not request them, then taking payments directly from checking accounts without approval.” [Darren Waggoner, “CFPB, FTC Sue Separate Payday Lending Operations,” Payments Source, 09/17/14]