CUOMO MANAGEMENT TAKES ACTION TO PREVENT PROHIBITED, ON LINE PAYDAY LENDING THROUGH DEBIT CARD NETWORKS

December 16, 2020

CUOMO MANAGEMENT TAKES ACTION TO PREVENT PROHIBITED, ON LINE PAYDAY LENDING THROUGH DEBIT CARD NETWORKS Superintendent Lawsky Sends Cease-and-Desist Letters to Extra On The Web Payday Lenders Illegally Lending in Nyc Governor Andrew M. Cuomo announced new efforts to stop the processing of unlawful payday advances through debit card transactions and assistance protect New York consumers. MasterCard and Visa have actually agreed in conversations because of the Department of Financial Services (DFS) to just simply take a few steps to aid stop this unlawful task over their debit card networks. A continuing, considerable DFS research has uncovered that – as regulatory force mounts on online payday lenders’ punishment regarding the Automated Clearing House (ACH) bank payments community – some loan providers 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 extra organizations that DFS’ ongoing research has defined as illegally marketing, making, or collecting on payday advances to ny customers – 12 of which seem to be making use of this debit card tactic that is new. With today’s action, DFS has now delivered cease and desist letters to 55 online loan that is payday. Formerly, in August 2013, DFS delivered letters that are cease-and-desist 35 online payday lenders offering unlawful loans to New Yorkers – nearly all which may have stopped lending in nyc after those letters. “My management is going to work tirelessly to remain one action in front of online payday lenders that try to evade state legislation and trap customers in a vicious period of financial obligation,” said Governor Cuomo.

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