Superintendent Lawsky Sends Cease-and-Desist Letters to Alternative On Line Payday Lenders Illegally Lending in Nyc
Governor Andrew M. Cuomo announced efforts that are new stop the processing of illegal payday advances through debit card transactions and assistance protect ny customers. MasterCard and Visa have actually agreed in conversations with all the Department of Financial Services (DFS) to simply simply just take a few actions to assist stop this activity that is illegal their debit card sites. A continuing, substantial DFS research has uncovered that – as regulatory force mounts on online payday lenders’ punishment associated with Automated Clearing House (ACH) bank payments community – some loan providers are rather utilizing 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 extra organizations that DFS’ ongoing investigation has recognized as illegally marketing, making, or collecting on payday advances to ny customers – 12 of which look like by using this brand new debit card strategy. With today’s action, DFS has delivered stop and desist letters to 55 online cash advance businesses. Formerly, in August 2013, DFS delivered cease-and-desist letters to 35 online payday lenders providing unlawful loans to New Yorkers – nearly all which may have stopped lending in ny after those letters.
“My management is going to work tirelessly to remain one action 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. (more…)