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

Superintendent Lawsky Sends Cease-and-Desist Letters to Extra On The Web Payday Lenders Illegally Lending in Nyc

Governor Andrew M. Cuomo announced brand new efforts to stop the processing of unlawful pay day loans through debit card transactions and assistance protect ny customers. MasterCard and Visa have actually agreed in talks because of the Department of Financial Services (DFS) to simply simply simply take a number of actions to greatly help stop this activity that is illegal their debit card companies. A continuous, substantial DFS research has uncovered that – as regulatory force mounts on online payday lenders’ punishment for the Automated Clearing House (ACH) bank payments community – some loan providers are rather making use of card that is debit as a conclusion run around that system to illegally subtract funds from New Yorkers’ bank reports.

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

“My management will continue to work tirelessly to keep one step in front of online payday lenders that you will need to evade state legislation and trap customers in a vicious period of financial obligation,” said Governor Cuomo. Continue reading “CUOMO MANAGEMENT TAKES ACTION TO PREVENT PROHIBITED, ON LINE PAYDAY LENDING THROUGH DEBIT CARD NETWORKS”