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 payday advances through debit card transactions and help protect ny customers. MasterCard and Visa have actually agreed in conversations because of the Department of Financial Services (DFS) to just simply simply take a number of actions to greatly help stop this activity that is illegal their debit card companies. A continuing, 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 loan providers are rather making use of debit card transactions 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 additional businesses that DFS ongoing investigation has defined as illegally advertising, making, or collecting on pay day loans to ny customers 12 of which seem to be utilizing this brand new debit card tactic. (más…)