Cuomo Administration Takes Action to prevent Prohibited, On The Web Payday Lending Through Debit Card Networks

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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 agreed in talks utilizing the Department of Financial Services (DFS) to just simply take a few actions to aid stop this unlawful task over their debit card companies. A continuing, considerable DFS research has uncovered that — as regulatory pressure 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 extra businesses that DFS’ ongoing research has recognized as illegally marketing, making, or collecting on pay day loans to ny customers — 12 of which seem to be making use of this debit card tactic that is new.

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