LLS America, LLC

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Additional Complaint Information

As of August 20, 2010, the BBB is not receiving responses to complaints brought to the attention of LLS. If you have an unresolved issue concerning this company we strongly advise you to file dual complaints with your state Attorney General as well as with the Federal Trade Commission at: www.ftc.gov for resolve.

Customer complaints reflect that upon accepting a payday loan from this group, their bank accounts receive debits on dates that are not agreed upon and for amounts not agreed upon. Other complaints reflect the amount of interest and fees exceed what the consumer expected to have to pay. Other complaints reflect funds are debited from their accounts after they have already paid the debt in full. Several complainants state that Little Loan Shoppe America is not licensed in the state the consumer lives in and therefore is not authorized to lend to customers within their state. Also, they allege that while Little Loan Shoppe America is required to transact within the regulations of the state the borrower lives in, this company is charging interest and fees above and beyond what is allowed for their state.

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• Government Actions

  WA DFI vs. Little Loan Shoppe Ltd.
  On January 28, 2010, the Washington State Department of Financial Institutions, Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist, Impose Fines, and Charge Costs against Little Loan Shoppe Ltd.; Little Loan Shoppe America, LLC; 639504 BC, Ltd.; Little Loan Shoppe Canada, LLC; 0738106 BC, Ltd.; 0738116 BC, Ltd.; 0738126 BC, Ltd.; LLS America, LLC; LLS-A, LLC (WA); Pacific LLS, LLC; Atlantic LLS, LLC; Eastern LLS, LLC; Central LLS, LLC; LLS-A, LLC (NV); LLS-NW, LLC; LLS-US, LLC; Doris Nelson; and Paul Cooper (collectively "Respondents"). Respondents offered investments in the form of promissory notes which Respondents claimed would be used to fund the operations and expansion of a payday/installment loan company. The Statement of Charges alleges that at least 300 investors worldwide invested approximately $29 million U.S. dollars and $26 million Canadian dollars with Respondents, including over $6 million dollars from at least 35 Washington residents. The Statement of Charges alleges that Respondents offered unregistered securities, acted as unregistered broker-dealers or securities salespersons, and violated the anti-fraud provisions of the Securities Act of Washington. The Securities Division intends to order Respondents to cease and desist from violating the Securities Act of Washington, and gives notice of its intent to impose fines and charge costs. Respondents have a right to request a hearing on the Statement of Charges. For further information and updates on this action, please go to the Washington State Department of FInancial Institution's web site at: www.dfi.wa.gov

  SEC v. Doris E. Nelson, Case No. 2:11-cv-00345-RMP
  

  On September 22, 2011, the Securities and Exchange Commission (SEC) charged the owner of a Spokane-Wash.-based payday loan business with conducting a massive Ponzi scheme and stealing investor money to fund her home improvement projects, gambling jaunts to Las Vegas, and purchases of a Corvette and a Mercedes.

  The SEC alleges that Doris E. Nelson of Colbert, Wash., defrauded investors in her company - the Little Loan Shoppe - by misrepresenting the profitability and safety of their investments and giving them the false impression that their money was being used to grow her business. In truth, Nelson used the vast majority of new investor money to repay principal and purported returns to earlier investors. She misappropriated millions of dollars in investor funds for her personal use.

  According to the SEC's complaint filed in federal district court in Spokane, Nelson raised approximately $135 million between 1999 and 2008 from at least 650 investors in the United States, Canada, and Mexico. Nelson falsely told investors that Little Loan Shoppe was financially sound. In written promissory notes, Nelson promised investors annual returns of 40 to 60 percent that she claimed would be paid through Little Loan Shoppe's profits. She also told investors that their money was safe because she had insurance or a separate account to pay investors back. However, Little Loan Shoppe was not profitable, investor money was not safe, and Nelson misappropriated the money to run her Ponzi scheme.

  The SEC further alleges that in mid-2008 as the scheme was nearing collapse, Nelson made a last-ditch effort to attract more investment money by announcing a "window to invest" and falsely telling investors that Little Loan Shoppe had "defied financial gravity" in the declining economy. Investors responded by investing millions of dollars in 2008 before the scheme finally collapsed in 2009. Payments to investors ceased and Little Loan Shoppe was forced into bankruptcy.

  In its federal court action, the SEC alleges Nelson violated Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The SEC seeks injunctive relief, disgorgement of ill-gotten gains, and monetary penalties. This case is pending. If you need further information regarding this order, contact the SEC's San Francisco office for details and updates. Refer to Case No. 2:11-cv-00345-RMP.

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• Advertising Review

  BBB has nothing to report concerning LLS America, LLC's advertising at this time.

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