Governor Andrew M. Cuomo today announced that their management is expanding its efforts to safeguard New Yorkers from unlawful, online payday lending and associated fraudulent tasks 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 putting customers prone to punishment by collecting and attempting to sell their information that is personal to unlawful online payday lenders as well as other organizations, including scam performers, in breach of the latest York State legislation.
Previously in 2010, my management established a study of online payday lenders, and after this our company is expanding this research to guard New Yorkers from similar frauds that ensnare families in endless rounds of financial obligation, Governor Cuomo stated. We will continue steadily to follow this research anywhere it leads and employ 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 nyc and thus could be the misleading advertising of the illegal loans by lead generators. Whats worse is that weve received complaints from New Yorkers about lead generation companies linked to frauds, harassing telephone calls, misleading advertising, and privacy breaches. New Yorkers could possibly get sucked as a apparently endless black colored gap of customer punishment when they offer their delicate information that is personal to these kind of sites.
Prospecting businesses try not to typically make payday advances straight, but rather create sites marketing and advertising those unlawful loans.
The lead generation companies entice consumers to provide them with sensitive personal information such as social security and bank account numbers and then may sell that information to payday lenders operating unlawfully in New York and other companies through promises of access to quick cash. As an element of its investigation, DFS has heard complaints from ny customers against a number of those to generate leads organizations about false and deceptive marketing (including celebrity endorsements), harassing telephone calls, dubious solicitations, privacy breaches, as well as other dilemmas.
Some customers also have complained to DFS about receiving calls from suspected scammers after supplying their information that is personal towards the to generate leads businesses. These frauds consist of enticing the customers to load cash on a pre-paid debit card and employ it to cover significant upfront charges to be able to get an on-line cash advance. The consumers reported not receiving the promised loan after paying these substantial upfront fees. Todays action sends a message that is strong pay day loan lead generators and their system of online marketers that deceptive or misleading marketing of payday advances to New Yorkers is unsatisfactory.
Payday financing is illegal in ny under both civil and criminal usury statutes. In a few full situations, but, loan providers make an effort to skirt brand brand brand New Yorks prohibition on payday financing by providing loans on the internet, hoping to prevent prosecution. Nevertheless, online lending that is payday plus the misleading or deceptive advertising of these loans to New Yorkers, is simply as illegal as payday financing built in individual in ny.
In August 2013, DFS demanded that 35 organizations cease and desist providing unlawful payday loans online in violation of the latest York legislation. Nearly all these businesses (at the very least 23) have ceased business in New York after getting the letters from DFS. Governor Cuomo additionally announced in August that Superintendent Lawsky delivered letters to 117 banking institutions in addition to NACHA, which regulates the utilization of the Automated Clearing House (ACH) system and whoever board includes representatives from lots of those banking institutions asking for which they assist DFS to cut down use of ny client is the reason payday lenders running unlawfully. Furthermore Superintendent Lawsky delivered a page in August to any or all commercial collection agency organizations running in nyc specifically directing them to not gather on illegal payday advances from the businesses DFS research had identified up to now, since such loans are null and void.
A listing of the 16 prospecting organizations to which DFS issued subpoenas is included below.
DFS is demanding a selection of materials included in its ongoing investigation, including advertising materials, agreements for product product sales of customer information and privacy policies.
- Allied Cash Loan
- Bahamas Advertising Group, Inc.
- Blue Worldwide, LLC d/b/a 100DayLoans, HighSpeedPayday
- DJR Group, LLC
- Fix Media Group, LLC d/b/a We Fix Cash
- Hydra Fund II
- LightSword, LLC d/b/a Aero Advance
- Cash Advance Ranger
- Payday Mobility
- PayDayForest
- PayDayMall
- Personal Advance Loan
- Attempting to sell Supply, LLC d/b/a MoneyMutual, LLC
- US Money Loans
- ValleyTrust
- WebMarketerLive d/b/a JustClickHereLoans, CashMoneyNow
Customers can avoid prepaid credit card as well as other frauds connected with cash advance lead generation internet sites with your precautions that are simple
Customers whom think that they’ve been the victim of a nasty pay day loan company or lead generation firm running unlawfully or if perhaps a financial obligation collector is trying to gather on a unlawful cash advance can register an issue using the Department of Financial Services at (800) 342-3736. DFS has additionally published home elevators its web site for customers about combating unlawful payday loans online, that is offered at the after website link.