Governor Andrew M. Cuomo announced efforts that are new stop the processing of unlawful payday advances through debit card transactions and assistance protect ny customers. MasterCard and Visa have actually agreed in conversations with all the Department of Financial Services (DFS) to simply simply simply take a number of actions to assist 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 utilizing 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 payday advances to ny customers 12 of which be seemingly applying this new debit card strategy. With todays action, DFS has sent stop and desist letters to 55 online pay day loan 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 nyc after those letters.
My management will be able to work tirelessly to remain one action in front of online payday lenders that you will need to evade state legislation and trap customers in a cycle that is vicious of, stated Governor Cuomo. Continue reading Cuomo Administration Takes Action to prevent Prohibited, On Line Payday Lending Through Debit Card Networks