Cuomo Administration Expands Investigation into Prohibited On The Web Payday Lending and Associated Consumer Abuses

Governor Andrew M. Cuomo today announced that their management is expanding its efforts to guard New Yorkers from illegal, online lending that is payday associated fraudulent activities that damage customers. The Department of Financial Services (DFS) sent subpoenas to 16 online lead generation firms suspected of deceptive or misleading marketing of illegal, online payday loans in New York as part of an extensive and ongoing investigation. DFS suspects that these businesses are placing customers prone to punishment by gathering and attempting to sell their information that is personal to unlawful online payday lenders and other businesses, including scam musicians, in violation of the latest York State legislation.

Early in the day this current year, my management established an investigation of online payday lenders, and after this we have been expanding this investigation to guard New Yorkers from similar frauds that ensnare families in endless rounds of financial obligation, Governor Cuomo said. We will continue steadily to follow this research anywhere it leads and make use of every device at our disposal to shield New Yorkers from people who look for to victim upon vulnerable customers.

Benjamin M. Lawsky, Superintendent of Financial Services, said, Payday financing is unlawful in ny and thus may be the misleading advertising of these unlawful loans by lead generators. Whats worse is the fact that weve received complaints from New Yorkers about to generate leads companies linked to frauds, harassing telephone calls, misleading advertising, and privacy breaches. New Yorkers will get sucked as an apparently endless black colored gap of consumer abuse when they offer their sensitive and painful private information to these kind of internet sites.

Prospecting organizations try not to typically make pay day loans straight, but rather put up web sites advertising and marketing those loans that are illegal. Plus »