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Bureau Settles with Hydra Group Over Payday Lending Case
On Friday, August 10, 2018, the Bureau issued a press release regarding a federal district court in the Western District of Missouri that entered an Order effectuating a settlement between the Bureau and Richard Moseley, Sr., Richard Moseley, Jr., and 20 interrelated corporate entities controlled by Moseley, Sr. and Moseley, Jr., in the Bureau’s lawsuit regarding the unlawful origination and servicing of short-term, small-dollar online loans to consumers nationwide.
According to the press release, under the terms of the consent order, the defendants will be banned from the industry, forfeit approximately $14 million in assets, and pay a $1 civil money penalty. The civil penalty amount is based in part on the defendants’ limited ability to pay. The order imposes a judgment for $69 million for purposes of paying consumer redress, but, in light of the defendants’ limited ability to pay, the judgment will be suspended upon compliance with other requirements.