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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 brand new efforts to stop the processing of unlawful payday advances through debit card transactions and assistance protect ny customers. MasterCard and Visa have actually agreed in talks utilizing the Department of Financial Services (DFS) to simply take a few actions to simply help stop this activity that is illegal their debit card sites. A continuing, substantial DFS investigation 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 alternatively making use of 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 defined as illegally marketing, making, or collecting on pay day loans to ny customers 12 of which seem to be utilizing this debit card tactic that is new.