A Payday Loan Scammer Is Going to Prison

Photo by kansascity.com

One of the biggest cases of the decade is officially over. Richard Moseley was charged with multiple crimes including stealing over $200 million from over 600 thousand Americans who trusted the company. As a punishment, he will spend 10 years behind steel bars and pay a hefty $49 million fine. The scammer managed to overcharge his client with massive interest rates way above reasonable amounts with some loans reaching 700% annually.

The Issue

Short-term loans are a normal practice for modern economies. As many people either cannot afford to take out credits or get denied by banks, the only option to pay bills on time and get some cash for unexpected expenses is to go to payday lenders. In some cases, the desperation makes people irresponsible and they will take money regardless of possible consequences. Moseley used said desperation against his clients and charged them with abnormal interest rates.

These interest rates were way above standards set by the government of the United States. Moseley operated mostly in Kansas City, Missouri. However, complaints and testimonials from clients of Hydra Lenders (Moseley’s company) were ignored for quite a long time. After he was accused, Moseley pointed at the fact that his company was legally registered in an offshore zone in New Zealand where US regulations are not applied.

The Case

The FBI had to conduct a lengthy investigation and interview clients and employees of the company in order to find enough evidence that the company and its owner indeed broke the law and operated legally and physically on the territory of the US.

The investigation showed that for over a decade from 2004 to 2014, Hydra Lenders used various deceptive tactics to charge clients with enormous interest rates and fees without ever informing them about the existence of hidden payments. Most victims were forced into debt and lots their livelihoods due to immoral and illegal actions of Moseley and co.

The saddest thing is that people such as Moseley often prey on those who already have a burden of debt. People with families, retirees, and even disabled who struggle to make ends meet often have to rely on short-term loans. Many cannot even stand up to unfair terms and conditions. The vast majority of victims did not receive any compensation. Another problem is that most clients of companies such as Hydra Lenders are those without bank accounts and credit cards.

The vast majority of debtors are Hispanics or African Americans. Caucasians and Asians tend to get into financial problems way less often. About 10% of income of debtors go to pockets of shady lenders. An average client of a payday lender pays up to $400 in fees and interest.

Moseley enjoyed a lavish life purchasing property outside of the US and driving luxurious cars. However, his beautiful life did not last for long. In 2017, he was charged with fraud and racket. Now, he is facing a prospect of spending next 10 years in prison.


The whole last decade was all about fighting against immoral practices in the payday lending industry. While many companies work responsibly and follow the law to the letter, there are people like Moseley who disrespect laws and morality.

If you do not want to get into a huge debt and fall victim to yet another loophole in regulations, you should always use decent services. Find a payday lender that has better ratings and reviews. You don’t have to take out unfair overly expensive loans. There is always a choice.