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 help protect ny consumers. MasterCard and Visa have actually agreed in conversations because of the Department of Financial Services (DFS) to simply just take a few actions to simply help stop this unlawful task over their debit card sites. A continuous, considerable DFS research has uncovered that as regulatory force mounts on online payday lenders punishment of this Automated Clearing House (ACH) bank payments community some lenders are alternatively utilizing 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 marketing, making, or collecting on payday advances to ny customers 12 of which look like by using this debit card tactic that is new. With todays action, DFS has delivered cease 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 the majority of that have stopped lending in New York after those letters.