Police are investigating Cash Express, a payday company that admits to sending fraudulent court documents to delinquent customers.
Nearly two dozen customers were bamboozled by the forged court documents that ordered them to show up for cases that didn't exist, only to be told by officials that the papers were bogus.
When shown the documents, Hamilton County District Attorney Bill Cox "immediately forwarded it to the police fraud unit," he said.
The court orders were similar to an office form the court uses, but "everything was moved all around on the page," said Nancy Masterson, head of the civil division of General Sessions Court.
"You cannot send court documents through the mail as a threat to someone; that's why this whole thing has been turned over to the fraud division," she said. "And these weren't our documents."
A woman who answered the phone at Cash Express on 4925 Brainerd Road said the documents came from "corporate."
"It wasn't us," she said.
Gary McNabb, owner of Cookeville, Tenn.-based Cash Express, blamed recently hired employees at the store for not following correct procedure.
"Yes, they have the forms that came from the corporate office, but to take people to court in this method, they skipped a step," he said.
McNabb says that although the company often does take delinquent customers to court, company policy is to work through an attorney, not just send warrants directly to customers.
"These people were eager to collect bad debts, and they just screwed up," he said. "They were eager to collect, especially this time of year when people are getting their tax refunds."
The snafu at Cash Express comes just as the U.S. Consumer Financial Protection Bureau is gearing up to take on predatory lending, after a controversial recess appointment gave the agency its legs after months of inaction.
"We recognize the need for emergency credit," said new agency director Richard Cordray in a speech in January. "At the same time, it is important that these products actually help consumers, rather than harm them."
The agency began in January to evaluate lenders' policies and procedures, and track activities like advertising and collection practices.
"Now, the Bureau will be giving payday lenders much more attention," Cordray said.