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The Federal Trade Commission (FTC) writes that it has partnered with the State of Nevada in charging 10 Internet-based payday lenders with failing to disclose key loan terms and practicing abusive and deceptive collections. Mainly based out of the United Kingdom, sites such as www.cash2day4u.com offered loans up to $500 in less than 24 hours with only the use of a borrower's bank account information and Social Security Number. The companies charged $35 to $80 for the loans, which were to be automatically drafted on the date of the borrower's next payday. Customers were given the option to keep the loan for an additional period with an additional rate charge. Many consumers eventually closed their checking accounts to stop the drafts from the companies, which then allegedly threatened arrest and legal action in direct violation of the FTC Act.

The defendants are charged with violating the Truth in Lending Act and Regulation Z, which require written disclosures of key loan terms such as APR, principal amounts and payment schedules. These loans were made with only verbal agreements over the phone. The companies are also charged with violating Nevada's Deceptive Trade Act by operating without a license within the state.