Thursday, October 02, 2014

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State Taking Action to Stop Illegal Online Payday Lending

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TWC News: State Taking Action to Stop Illegal Online Payday Lending
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The state is taking action to stop illegal online payday lending.

The loans are similar to cash advances on credit lines, but they're based on pending paychecks and are illegal in New York.

Now, the Department of Financial Services is working with MasterCard and Visa to stop lenders from deducting funds from people's bank accounts via debit transactions to pay off the loans.

The department also sent cease and desist letters to 20 companies identified as illegally promoting, making or collecting on payday loans.

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