New York State is after online payday lenders in a big way. An investigation by the New York State Department of Financial Services (DFS) found 35 companies offering illegal payday loans to consumers and sent them cease and desist letters. Some of these companies offered loans with annual interest rates as high as 1,095 percent.
Benjamin M. Lawsky, Superintendent of Financial Services, also sent letters to 117 banks – as well as NACHA, which administers the Automated Clearing House (ACH) network and whose board includes representatives from a number of those banks – requesting that they work with DFS to cut off illegal payday lenders’ access to New York customer accounts. Credits and debits that must pass through the ACH network make the loans possible. The Cuomo Administration is requesting that those banks and NACHA work with DFS to create a new set of model safeguards and procedures to cut off ACH access to payday lenders.
Governor Andrew Cuomo said, “Illegal payday lenders swoop in and prey on struggling families when they’re at their most vulnerable – hitting them with sky-high interests rates and hidden fees. We’ll continue to do everything we can to stamp out these pernicious loans that hurt New York consumers.”
Superintendent Lawsky said: “Companies that abuse New York consumers should know that they can’t simply hide from the law in cyberspace. We’re going to use every tool in our tool-belt to eradicate these illegal payday loans that trap families in destructive cycles of debt.”
Superintendent Lawsky also sent letters today to all debt collection companies operating in New York specifically directing them not to collect on illegal payday loans from the 35 companies DFS identified.
The move is winning praise from consumer activists like Sarah Ludwig of the New Economy Project, formerly NEDAP. She said,”Governor Cuomo and Superintendent Lawsky are taking exactly the right approach here — not only demanding that online payday lenders stop making illegal loans to New Yorkers, but also holding accountable banks and the payment system itself, which make this usurious and extremely exploitative lending possible in the first place.”
The following 35 companies received cease and desist letters today from Superintendent Lawsky for offering illegal payday loans to New Yorkers. The DFS investigation found that a number of these companies were charging interest rates in excess of 400, 600, 700, or even 1,000 percent.
What’s Wrong With Payday Loans?
Here on the companies that are the list:
· ABJT Funding, LLC, www.dollarpremier.com
· Advance Me Today, www.advancemetoday.com
· American Web Loans, www.americanwebloan.com
· Archer Direct, LLC, www.archerdirectservices.com
· Bayside Loans, www.baysideloans.com
· BD PDL Services, LLC, www.bottomdollarpayday.com
· Blue Sky Finance, LLC , www.extrafundscash.com
· BS Financial Group Inc., www.paydayaccelerated.com
· Cash Jar, www.cashjar.com
· Cash Yes, www.cashyes.com
· Discount Advances, www.discountadvances.com
· DMA Financial Corp., www.qloot.com
· Eastside Lenders, LLC, www.eastsidelenders.com
· Fast Cash Personal Loans, www.fast-cash-personal-loans.com
· Golden Valley Lending, www.goldenvalleylending.com
· Government Employees Credit Center, Inc., www.cashdirectexpress.com
· Great Plains Lending, LLC, www.greatplainslending.com
· Horizon Opportunities, LLC, www.paydaycashlive.com/horizon-opportunities-PAYDAY-LOAN
· Loan Point USA Online, www.loanpointusaonline.com
· MNE Services, Inc., www.ameriloan.com
· MobiLoans, LLC, www.mobiloans.com
· MyCashNow.com, Inc., www.mycashnow.com
· National Opportunities Unlimited, Inc., www.itsmypayday.com
· Northway Broker Ltd., www.myzip19.com
· PayDayMax Ltd., www.paydaymax.com
· Peak 3 Holding, LLC, www.peak.3.holdings.pay.day.loans.750cashs.com
· Plain Green, LLC, www.plaingreenloans.com
· Red Rock Tribal Lending, LLC, www.castlepayday.com
· SCS Processing, www.everestcashadvance.com
· SFS, Inc., www.oneclickcash.com
· Sonic Cash, www.soniccash.com
· Sure Advance, LLC, www.sureadvance.com
· Tribal Credit Line, www.quickcredit911.com
· United Consumer Financial Services, Inc., www.ezpaydaycash.com
· Western Sky Financial, LLC, www.westernsky.com
