Cuomo Administration Takes Action to prevent Prohibited, On The Web Payday Lending Through Debit Card Networks
Governor Andrew M. Cuomo announced efforts that are new stop the processing of unlawful payday advances through debit card transactions and assistance protect ny customers. MasterCard and Visa have actually agreed in conversations aided by the Department of Financial Services (DFS) to just simply just take a number of actions to simply help stop this activity that is illegal their debit card systems. A continuing, substantial DFS research has uncovered that as regulatory force mounts on online payday lenders punishment of this Automated Clearing House (ACH) bank payments system some loan providers are alternatively making use of card that is debit 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 additional businesses that DFS ongoing investigation has defined as illegally marketing, making, or collecting on payday advances to ny customers 12 of which look like making use of this debit card tactic that is new. With todays action, DFS has delivered stop and desist letters to 55 online loan that is payday. Formerly, in August 2013, DFS delivered cease-and-desist letters to 35 online payday lenders providing unlawful loans to New Yorkers the majority of that have stopped lending in nyc after those letters.
My management works tirelessly to remain one action in front of online payday lenders that you will need to evade state legislation and trap consumers in a vicious period of financial obligation, stated Governor Cuomo. (more…)