Cuomo Administration Takes Action to prevent Illegal, On The Web Payday Lending Through Debit Card Networks
Governor Andrew M. Cuomo announced efforts that are new halt the processing of unlawful pay day loans through debit card transactions and assistance protect ny consumers. MasterCard and Visa have actually agreed in conversations with all the Department of Financial Services (DFS) to simply just take a few steps 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 utilizing debit card transactions as a conclusion run around payday loans NE 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 pay day loans to ny consumers 12 of which seem to be making use of this brand new debit card strategy. With todays action, DFS has delivered stop and desist letters to 55 online loan that is payday. Formerly, DFS delivered letters that are cease-and-desist 35 online payday lenders providing unlawful loans to New Yorkers the majority of which may have stopped lending in nyc after 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 consumers in a vicious period of financial obligation, stated Governor Cuomo.