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UNITED STATES DISTRICT COURT 

NORTHERN DISTRICT OF ILLI OIS 

EASTERN DIVISIO 

UNITED STATES OF AMERICA, 

Plaintiff, 

v. 

PLS FINANCIAL SERVIC S, INC. 

an Illinois corporation, 

PLS GROUP INC. 

a Delaware corporation, and 

THEPAYDAYLOANSTORE 

OF ILLINOIS, INC., 

an Illinois corporation 

Defendants. 

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CASE NO. 

COMPLAINT FOR CIVIL PENALTIES, 

PERMANENT INJ1JNCTION, AND 

OTHER EQUITABLE RELIEF 

Plaintiff, the United States of America, acting upon notifi cation and authorization to the 

Attorney General by the Federal Trade Commission (FTC or Commission), pursuant to Section 

16(a)( 1) of the Federal Trade Commission Act (FTC Act), 15 U.S.C. § 56(a)(1), for its 

Complaint alleges as follows: 

1. Plaintiffbrings this action und r Sections 5(a), 13(b), and 16(a) of the Federal 

Trade Commission Act (FTC Act) 15 U.S .C. §§ 45(a), 53(b), and 56( a) and Section 621 (a) of 

the Fair Credit Reporting Act (FCRA), 15 U.S .C. § 168ls(a) to obtain monetary civil penalties 

and permanent injunctive and other equitable relief for Defendants acts or practices in violation 

of (a) the rule regarding the Disposal of Consumer Report Information and Records (Disposal 

Ru le) 16 C.F.R. Part 682 issued pursuant to Section 628 of the FCRA, 15 U.S.C. § 1681 w as 

added by Section 2 16 of the Fair and Accurate Credit Transactions Act of 2003 (FACT ct); (b) 
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the rule regarding the Standards for Safeguarding Customer Information (Safeguards Rule), 16 

C.F.R. Part 314, issued pursuant to Title V, Subtitle A, of the Gramm-Leach-Bliley Act (GLB 

Act), 15 U.S.C. §§ 6801 -6809; (c) Section 5(a) ofthe FTC Act, 15 U.S .C. § 45(a); and (d) the 

rule regarding the Privacy of Consumer Financial Information (Privacy Rule), 16 C.F.R. Part 

313, issued pursuant to Title V, Subtitle A, of the GLB Act, 15 U.S.C. §§ 6801-6809. 

JURISDICTION AND VENUE 

2. This Court has subject matter jurisdiction pursuant to 28 U.S.C. § 1331 , 1337(a), 

1345, and 1355, and 15 U.S.C. §§ 45(a), 53(b), 56(a), and 1681 s(a). 

3. Venue is proper in this district under 15 U.S .C. § 53(b) and 28 U.S.C. §§ 1391 (b), 

139 1(c), and 1395(a). 

DEFENDANTS 

4. Defendant PLS Financial Services, Inc. (PLS) i an Illinois corporation with its 

principal place of business at 300 N. Elizabeth Street, 4th Floor, Chicago, Illinois 60607. At all 

times relevant to this Complaint, PLS has transacted business in this district. PLS is wholly 

owned by Defendant PLS Group Inc. PLS 's President is Robe1i Wolfberg and its 

Secretary/Treasurer is Daniel Wolfberg. 

5. Defendant PLS Group, Inc. (Group) is a Delaware corporation with its principal 

place of business at 300 N. Elizabeth Street, 4th Floor, Chicago Illinois 60607. Group was 

incorporated in or about March 2011 , and at times relevant to this Complaint, Group has 

transacted business in this district. Group 's President is Robert Wolfberg and its 

Secretar /Treasurer is Dani el Wolfberg. Together, Robert and Daniel Wolfberg own over 80% 

of Group. 

6. Defendant The Payday Loan Store of Illinois, Inc. (PLS-Il linois) is an Illinois 

corporation with its principal place of business at 300 N. Eli zabeth Street, 41

h Floor Chicago, 

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Illinois 60607. At all times relevant to this Complaint, PLS-Illinois has transacted business in 

this district. PLS-Illinois is wholly owned by Group. PLS-Illinois's President is Daniel 

Wolfberg and its Secretary/Treasurer is Robert Wolfberg. 

7. In addition to PLS and PLS-Illinois, Group owns approximately two dozen 

corporations and other legal entities (Operating Companies) that in turn own retai l stores known 

as PLS Loan Stores and PLS Check Cashers. PLS-Illinois is one such Operating Company. 

Before approximately March 20 11 , PLS and the Operating Companies, including PLS-IIIinois, 

were owned in whole or in part by Robert and Daniel Wolfberg. Since approximately March 

2011 , PLS and the Operating Companies, including PLS-IIIinois, have been wholly owned by 

Group. 

8. Defendants PLS and PLS-Illinois, in connection with the other Operating 

Companies, have operated as a common enterprise while engaging in the unlawful acts and 

practices alleged below. PLS and PLS-Illinois have conducted the acts and practices described 

below through an affiliated group of companies that have common directors, officers, and office 

locations; centralized recordkeeping or other systems; and identical or substantially simil ar sales 

techniques. Because PLS and PLS-Illinois have operated as a common enterprise each ofthem 

is jointly and severally liable for the acts and practices alleged below. 

9. By virtue of its ownership ofPLS and the Operating Companies, including PLSIllinois, Defendant Group has had the ability to formulate, direct, control, and participate in, the 

acts and practices of PLS and PLS-Illinois. Defendant Group is jointly and severally liable for 

the conduct ofPLS and PLS-IIIinois because it has had and continues to have (a) the authority to 

control and direct the activities of PLS, PLS-Illinois, and the other Operating Companies 

including the conduct relating to PLS Loan Stores and PLS Check Cashers alleged herein; and 

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(b) the authority and responsibility to prevent or correct the unlawful acts or practices all eged in 

this Complaint. 

COMMERCE 

10. At all times material to this Complaint, Defendants have maintained a substantial 

course oftrade in or affecting commerce, as defined in Section 4 ofthe FTC Act 15 U.S.C. § 44. 

DEFENDANTS' BUSINESS ACTIVITIES 

11 . Group's Operating Companies own and operate over 300 PLS Loan Stores and 

PLS Check Cashers in at least nine states. PLS provides management services to PLS Loan 

Stores and PLS Check Cashers, and establishes the policies and procedures used by PLS Loan 

Stores and PLS Check Cashers to ensure the safe collection, handling, and disposal of sensitive 

consumer financial information. PLS also audits PLS Loan Stores and PLS Check Cashers to 

assess compliance with these policies and procedures. 

12. Operating Companies using the name PLS Loan Store offer consumers a variety 

of products and services, including but not limited to payday loans automobile title loans shortterm installment loans, debit cards, credit cards and, in some instances, tax preparation services 

and assistance in obtaining loans from others. There are PLS Loan Stores in at least the 

following states: Alabama, Arizona, California, Illinois, Indiana, Mississippi, Texas, and 

Wisconsin. 

13. Operating Companies using the name PLS Check Cashers offer consumers a 

variety of products and ser ices, including but not limited to cell phones, phone cards, debit 

cards, roll ed coins, stamps, transit passes, and money orders, as well as check cashing, notary, 

facsimile , ATM, copying, and coin machine services. There are PLS Check Cashers in at least 

the following states: Arizona, California, Illinois, Indiana, New York Texas, and Wisconsin. 

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14. In the course of offering and selling products and services to consumers through 

PLS Loan Stores and/or PLS Check Cashers, Defendants collect and maintain, and/or are 

responsible for collecting and maintaining sensitive consumer information concerning their 

customers, including but not limited to consumers' names, addresses, birthdates telephone 

numbers, Social Security numbers driver's license numbers, employment information bank 

account information and consumer reports as defined in the FCRA. 

15. In operating PLS Loan Stores, Defendants disseminated or caused to be 

disseminated to consumers written statements regarding their privacy and security policies and 

practices, including but not limited to a one page "Privacy Notice" which stated in part, "We 

maintain physical electronic and procedural safeguards that comply with federal regulations to 

guard your nonpublic information." 

16. Contrary to these statements Defendants, through their operation and 

management of PLS Loan Stores and PLS Check Cashers, engaged in a number of practices that 

taken together, failed to provide reasonable and appropriate security for sensiti e consumer 

information they collected handled and/or maintained. Since at least Januar 2009, in 

connection with the operation and management ofPLS Loan Stores and PLS Check Cashers, 

PLS and PLS-Tllinois, and, later Group, fai led to implement policies and procedures in key 

areas, including the physical security of sensitive consumer information; the proper coll ection, 

handling and disposal of sensitive consumer information· and employee training regarding such 

matters. In addition Defendants fail ed to develop, implement, and maintain a comprehensive 

written information security program and failed to identify reasonably foreseeab le intemal and 

external risks to consumer information. 

17. Defendants also engaged in acts and practices that taken together constitute 

failures to take reasonable m asures to protect consumer rep011s, or information derived from 

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consumer reports, against unauthorized access or use in cmmection with their disposal. Among 

other things, Defendants failed to (a) implement and monitor policies and procedures requiring 

sensitive consumer information to be disposed of in a manner that ensures that the information 

cannot practicably be read or reconstructed· (b) ensure that employees assigned to collect or 

transp011 the information for disposal are qualified to do so and ha e received appropriate 

guidance or training; (c) alert such employees to the sensiti e nature of the information, or 

instruct them to take precautions with respect to the information· and (d) oversee the collection 

and transport of the information for disposal or otherwise confirm that the information is 

disposed of i11 a maimer that ensmes that the information cannot practicably be read or 

reconstructed. 

18. As a result of the failures described above, intact documents containing 

consumers' personal information were found on multipl e occasions in dumpsters near PLS Loan 

Stores and/or PLS Check Cashers, which were unsecured and easil y accessible to the public. For 

example, in April 2010, boxes of documents were recovered from a dumpster near the 

Bolingbrook, Illinois, PLS Loan Store at 346/348 Bolingbrook Commons. In the same month, 

additional documents were retrieved from dumpsters located near the PLS Loan Stores and/or 

PLS Check Cashers locations at 4838 South Cicero Chicago Illinois· 628 We t 14111 Street, 

Chicago Heights, Illinois; and 1515 Western A venue Chicago Heights lllinois. These 

documents contained nonpublic personal information, including customers' names addresses 

Social Security numbers wage information, bank account information, cancelled checks, loan 

applications, loan agreements, receipts for loan payments, at least 29 consumer repmts and other 

sensitive consumer information that had been coll ect c1 by PLS and PLS-Illinois. 

19. In addition from at least March 2009 to October 20 10 PLS and PLS-lllinois 

frequently fai led to ensure that its customers were provided with a privacy noti ce, as required by 

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the Privacy Rule describing its information coll ection and sharing practices with respect to 

affiliated and non-affiliated third parties. PLS and PLS-IIlinois required such privacy notices to 

be signed by customers and kept in tiles located in the relevant PLS Loan Store. 

Notwithstanding this policy the files in many PLS Loan Stores had unsigned outdated or 

missing privacy notices. PLS and PLS-IUinois were aware of these deficiencies and yet fai led to 

take meaningful steps to correct them. 

VIOLATIONS OF THE DISPOSAL RULE 

COUNT I 

20. Section 628(a) ofthe FCRA 15 U.S.C. § 1681 w(a) as added by Section 2 16 of 

the FACT Act, directs the Commission to prescribe regulations requiring' any person that 

maintains or otherwise possesses consumer information or any compilation of consumer 

information, derived from consumer reports for a business purpose to properly dispose of any 

such information or compilation. ' Pursuant to this directive, the Commission promulgated the 

Disposal Rule, 16 C.F.R. § 682.1 et seq., which took effect on June l , 2005 . The Disposal Rul e 

requires any person that maintains or otherwise possesses consumer information derived from 

consumer reports for a business purpose to take reasonable measures to protect against 

unauthorized access to or use of the information in c01mection with its disposal. 16 C.F.R. 

§ 682.3. 

2 1. Section 621 of the FCRA, 15 U.S.C. § 1681 s, authorizes the Commission to use all 

of its functions and powers under the FTC Act to enforce compliance with the FCRA by all 

persons subj ect thereto except to the extent that enforcement specifically is committed to some 

other go ernmental agenc irrespective of whether the p rson is engaged in commerce or meets 

any other jurisdictional tests set forth by the FTC Act. 

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22. PLS and PLS-Illinois are ' persons" as defined in the FCRA, 15 U.S.C. 

§ 1681a(b), and the Disposal Rule 16 C.F.R. § 682.1. 

23. At all times relevant to this action, PLS and PLS-Illinois have maintained and 

possessed consumer information" derived from " consumer reports " as defined in the FCRA, 

15 U.S.C. § 168la(d) and the Disposal Rule, 16 .F.R. § 682.1(b), for a business purpose. 

24. Through the acts and practices described in paragraphs 16 to 18, PLS and PLSIIlinois have failed to take reasonable measures to protect against unauthori zed access to or use 

of consumer information in connection with its disposal, in violation of Section 628 of the 

FCRA, 15 U.S.C. § 1681 w and Section 682.3(a) of the Disposal Rule, 16 C.F.R. § 682.3(a). 

25. Pursuant to Section 621(a)(l) ofthe FCRA, 15 U.S.C. § 1681s(a)(1) PLS's and 

PLS-Illinois's violations of the FCRA and the Disposal Rule constitute unfair or deceptive acts 

or practices in violation of Section 5(a) of the FTC Act 15 U .S.C. § 45(a). 

26. The acts or practices described in paragraphs 16 to 18 constitute a pattern or 

practice of knowing violations, as set f01ih in Section 621(a)(2)(A) ofthe FCRA, 15 U.S.C. 

§ 1681s(a)(2)(A). 

VIOLATIONS OF THE SAFEGUARDS RULE 

COUNT II 

27. The Safeguards Rule, which implements Section 501(b) of the GLB Act, 

15 U.S .C. § 680l(b) was promulgated by the Commission on May 23 , 2002 and became 

effective on May 23 , 2003. The Rule requires financial institutions to protect the security, 

confidentiality, and int grity of customer information by developing a comprehen ive written 

information security program containing reasonable administrative technical, and physical 

safeguards, including safeguards used to access collect, distribute, process, protect, store, use 

transmit, dispose of, or otherwise handle customer information. 

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28. PLS and PLS-Illinois are' financial institutions, as defined in Section 509(3)(A) 

of the GLB Act, 15 U.S.C. § 6809(3)(A) and are subject to the requirements of the Safeguards 

Rule. 

29. Through the acts and practices alleged in paragraph 16, PLS and PLS-IIIinois 

failed to develop or implement reasonable administrati e technical and physical safeguards to 

protect the security confidentiality and integrity of customer information, in violation of the 

Safeguards Rule. In add ition PLS and PLS-Illinois failed to identify reasonably foreseeable 

internal and extemal risks to customer information, and failed to develop, implement, or 

maintain a comprehensive written information security program as required by the Rule, 16 

C.F.R. Part 3 14. 

VIOLATIONS OF THE FTC ACT 

COUNT III 

30. Tlu·ough the means described in paragraph 15 Defendants represented, expressly 

or by implication, that they had implemented reasonable and appropriate measures to protect 

sensitive consumer information from unauthorized access. 

31. In truth and in fact, as described in paragraphs 16 to 18 Defendants did not 

implement reasonable and appropriate measures to protect sensiti e consumer information from 

unauthorized access. Therefore, the representations described in paragraph 30 were false or 

misleading and constitute deceptive acts or practices in violation of Section 5(a) of the FTC Act 

15 U.S.C. § 45(a). 

VIOLATIONS OF THE PRIVACY RULE 

COUNT IV 

32. The Privacy Rul e, which implements Sections 50 1-509 ofthe GLB Act, 

15 U.S.C. §§ 6801-6809 was promul gated by the Commission on May 24, 2000, and became 

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effective on July 1 2001. The Rule requires financial institutions to provide, no later than when 

a customer relation hip arises and annually for the duration of that relationship a clear and 

conspicuous notice to customers that accurate ly reflects [the financ ial institution's) privacy 

policies and practices" including its security policies and practices. 16 C.F.R. §§ 313.4(a), 

313.5(a)(1) and 313.6(a). 

33. PLS and PLS-IIlinois are 'financial institutions," as defined in Section 509(3)(A) 

of the GLB Act, 15 U.S.C. § 6809(3)(A), and are subject to the requirements of the Pri acy Rule. 

34. As set fm1h in paragraph 19, at arious times from at least March 2009 through 

October 2010, PLS and PLS-Illinois failed to ensure that their customers were provided with a 

copy ofits privacy policy in violation ofthe Privacy Rule, 16 C.F.R. Part 313. 

CONSUMER INJURY 

35. Consumers have suffered and wil l continue to suffer substantial injur as a result 

of Defendants' violations of Section 5(a) ofthe FTC Act and of the Disposal Safeguards, and 

Privacy Rules. Absent injunctive relief by this Court, Defendants are likely to continue to injure 

consumers and harm the public interest. 

THIS COURT'S POWER TO GRANT RELIEF 

36. Section 621 (a)(2)(A) of the FCRA, 15 U .S.C. § 1681 s(a)(2)(A) as adjusted by 

16 C.F.R. § 1.98(m), authorizes the Court to award monetary civil penalti s ofnot more than 

$3 500 for each knowing violation of the FCRA that constitutes a pattern or practice of iolations 

of the statute. 

37. Each instance in which PLS and PLS-Illinois failed to comply with Section 628 of 

the FCRA 15 U.S.C. § 1681 w, and the Disposal Rul e, 16 C.F.R. Part 682 constitute a separate 

vio lation of the F RA for the purpose of assessing monetary ci il penalties under Section 

621(a)(2)(A) ofthe FCRA, 15 U.S.C. § 1681 s(a)(2)(A). 

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38. Under section 13(b) ofthe FTC Act, 15 U.S.C. § 53(b), this Cou11 is authorized to 

issue injunctive and such other and further equitable and ancillary relief as it may deem 

appropriate in the enforcement of the FCRA the GLB Act, and the FTC Act, to prevent and 

remedy any violation of any provision of law enforced by the Commission. 

PRAYER FOR INJUNCTIVE AND MONETARY RELIEF 

WHEREFORE, Plaintiff~ pursuant to Sections 5(a), 13(b) and 16(a) of the FTC Act, 15 

U.S.C. §§ 45(a) 53(b), and 56(a) and Section621(a) ofthe FCRA 15 U.S.C. § 1681s(a), and 

the Comi's own equitable powers requests that the Court: 

(1) Enter judgment against PLS and PLS-Illinois and in favor of Plaintiff on Counts I-IV; 

(2) Enter judgment against Group and in favor of Plaintiff on Count III; 

(3) Enter a permanent injunction to prevent future violations of the FCRA, the Disposal 

Rule, the GLB Act, the Safeguards Rule, the FTC Act, and the Privacy Rule; 

(4) Award Plaintiff monetary civil penalties from PLS and PLS-riiinois for each violation 

of the FCRA alleged in the Complaint; and 

(5) Award Plaintiff the costs of bringing this action, as well as such other and additional 

relief as the Comi may determine to be just and proper. 

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Dated : October 17, 2012 

OF COU SEL: 

JON MILLER STEIGER 

Director, East Central Region 

MARIA DEL MONACO 

JONATHAN L. KESSLER 

Attorneys 

Federal Trade Commission 

1111 Superior Avenue, Suite 200 

Cleveland, OH 44114 

Phone: (216) 263-3405 (Del Monaco) 

Phone: (216) 263-3436 (Kessler) 

Fax: (216) 263-3426 

mdelmonaco(ci),ftc. gov 

jkessler@ftc.gov 

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Respectfully submitted 

FOR THE ITED STATES OF AMERICA 

STUART F. DELERY 

Acting Assistant Attorney General 

Civil Division 

MICHAELS. BLUME 

Director 

RICHARD GOLDBERG 

Assistant Director 

Consumer Protectio Branch 

-;7 

Trial A orney Consumer Protection Branch 

Unjted States Department of Justice 

P.O. Box 386 

Washington DC 20044 

Phone: 202-35 3-2001 

Fax: 202-514-8742 

josh. burke@usdoj .gov 

GARY S. SHAPIRO 

Acting United States Attorney 

Northern District of Illinois 

THOMAS P. WALSH 

Chief Civil Division 

Northern District of Illinois 

219 South Dearborn, 5111 Floor 

Chicago IL 60604 

Phone: 3 12-353-531 2 

thomas. walsh2@usdoj .gov