DFS Investigation Uncovers on the web Payday Lenders Shifting to Use of Debit Card Transactions as Pressure Mounts on Their punishment of ACH Electronic Payments Network
Superintendent Lawsky Sends Cease-and-Desist Letters to Extra On Line Payday Lenders Illegally Lending in Nyc
Governor Andrew M. Cuomo announced brand new efforts to halt the processing of unlawful payday advances through debit card transactions and assistance protect ny customers. MasterCard and Visa have actually agreed in talks with all the Department of Financial Services (DFS) to simply simply take a number of actions to simply help stop this activity that is illegal their debit card sites. A continuous, substantial DFS research has uncovered that вЂ“ as regulatory force mounts on online payday lendersвЂ™ abuse of this Automated Clearing House (ACH) bank payments community вЂ“ some loan providers are rather making use of debit card transactions as a conclusion run around that system to illegally subtract funds from New YorkersвЂ™ bank records.
Benjamin M. Lawsky, Superintendent of Financial Services, also today sent cease-and-desist letters to 20 extra organizations that DFSвЂ™ ongoing research has defined as illegally advertising, making, or collecting on pay day loans to ny customers вЂ“ 12 of which be seemingly applying this debit card tactic that is new. “CUOMO MANAGEMENT TAKES ACTION TO PREVENT PROHIBITED, ON LINE PAYDAY LENDING THROUGH DEBIT CARD NETWORKS”の続きを読む