Cuomo Administration Takes Action to prevent Prohibited, On The Web Payday Lending Through Debit Card Networks

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 pay day loans through debit card transactions and assistance protect ny customers. MasterCard and Visa have actually agreed in talks using the Department of Financial Services (DFS) to simply simply take a few actions to simply help stop this unlawful task over their debit card companies. A continuing, substantial DFS research has uncovered that as regulatory pressure 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 reports.

Benjamin M. Lawsky, Superintendent of Financial Services, also today sent cease-and-desist letters to 20 additional businesses that DFS ongoing investigation has recognized as illegally advertising, making, or collecting on payday advances to ny consumers 12 of which seem to be applying 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 sent letters that are cease-and-desist 35 online payday lenders providing unlawful loans to New Yorkers the majority of that have stopped lending in nyc after those letters.

My management will continue to work tirelessly to keep one action in front of online payday lenders that you will need to evade state legislation and trap consumers in a cycle that is vicious of, stated Governor Cuomo.

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