Oswego Couple Ordered to Pay $6.4M in Payday Loan Scam

An Oswego couple who allegedly threatened and intimidated consumers over payday loans that were not owed were ordered to pay $6.4 million to the victims of their scheme.

Charles and Chantelle Dickey were ordered to pay the amount Tuesday and were banned from operating a debt collection agency, according to the Chicago Tribune.

The couple was charged in April 2015 after many people paid the money because they were afraid of any repercussions that might arise if the debt was not paid. Consumers believed the defendants were legitimate and collecting real debt. Consumers also paid because they wanted the harassment to stop. They often paid using a debit or credit card, according to the complaint.

“You have scam operations that are collecting fake debts that consumers do not owe, and they do it through threatening and harassing individuals into eventually paying money that they don’t owe,” Illinois Attorney General Lisa Madigan told the Tribune.

The Oswego couple operated their payday loan scam under multiple names, including Payday Loan Recovery Group, Second Chance Financial and KIP.

The Dickey couple told consumers that they would face arrest or imprisonment if they failed to pay the alleged debt.

“In truth, however, consumers will not have arrest or imprisonment if they fail to pay the defendants. Defendants cannot have consumers arrested or imprisoned for non-payment of a private debt,” the complaint stated.

According to the complaint, some people did have payday loans out, but those loans were not delinquent, nor did the Dickeys have the right to collect on them.

The Dickeys’ Oswego home is in foreclosure.