CUOMO MANAGEMENT TAKES ACTION TO PREVENT PROHIBITED, ON LINE PAYDAY LENDING THROUGH DEBIT CARD NETWORKS

CUOMO MANAGEMENT TAKES ACTION TO PREVENT PROHIBITED, ON LINE PAYDAY LENDING THROUGH DEBIT CARD NETWORKS

DFS Investigation Uncovers on the web Payday Lenders Shifting to Use of Debit Card Transactions as Pressure Mounts on Their punishment of ACH Electronic Payments Network

Superintendent Lawsky Sends Cease-and-Desist Letters to Further On Line Payday Lenders Illegally Lending in Ny

Governor Andrew M. Cuomo announced efforts that are new stop the processing of unlawful pay day loans through debit card transactions and assistance protect ny customers. MasterCard and Visa have actually agreed in conversations utilizing the Department of Financial Services (DFS) to just take a few actions to assist stop this unlawful task over their debit card companies. A continuing, substantial DFS research has uncovered that – as regulatory force mounts on online payday lenders’ abuse associated with the Automated Clearing House (ACH) bank payments system – some loan providers are alternatively making use of debit card transactions as a conclusion run around that system to illegally subtract funds from New Yorkers’ bank records.

Benjamin M. Lawsky, Superintendent of Financial Services, also today sent cease-and-desist letters to 20 extra organizations that DFS’ ongoing research has recognized as illegally advertising, making, or collecting on payday advances to ny customers – 12 of which seem to be applying this brand new debit card strategy. With today’s action, DFS has delivered stop and desist letters to 55 online loan that is payday. Formerly, in August 2013, DFS delivered letters that are cease-and-desist 35 online payday lenders providing unlawful loans to New Yorkers – nearly all which may have stopped lending in nyc after those letters.

“My management will be able to work tirelessly to keep one action in front of online payday lenders that you will need to evade state law and trap customers in a cycle that is vicious of, ” said Governor Cuomo. “By working with us to root away this conduct that is illegal Visa and MasterCard have actually stepped as much as the dish and shown how personal organizations can perhaps work alongside local government to guard susceptible New Yorkers. Continuar lendo CUOMO MANAGEMENT TAKES ACTION TO PREVENT PROHIBITED, ON LINE PAYDAY LENDING THROUGH DEBIT CARD NETWORKS