Money Tree to Settle FTC Charges

Money Tree Inc. agreed to pay almost $1.3 million in fines and refunds to settle Federal Trade Commission charges that it discriminated against poor and elderly consumers and didn’t disclose the real cost of loans to other customers. The Bainbridge, Ga.-based money lender and its president, Vance “Rudy” Martin, agreed to pay $75,000 in fines. The FTC had charged that stricter terms were imposed on loan applicants who received public assistance. The company also agreed to offer refunds totaling as much as $1.2 million to consumers who were required to buy extra insurance to get a loan and who weren’t told how the cost of the extras affected their finance charge. The company offers short-term loans in Georgia, Alabama and Louisiana.