DealBook – New York Subpoenas Websites In An Effort To Curb Payday Lenders – 3 December 2013

DealBook

By RACHEL ABRAMS and JESSICA SILVER-GREENBERG

Government authorities are trying to choke off the supply of borrowers to online lenders that offer short-term loans with annual interest rates of more than 400 percent, the latest development in a broader crackdown on the payday lending industry.

New York State’s financial regulator, Benjamin M. Lawsky, sent subpoenas last week to 16 so-called lead generator websites, which sell reams of sensitive consumer data to payday lenders, according to a copy of the confidential document reviewed by The New York Times. The subpoenas seek information about the websites’ practices and their links to the lenders.

www.dealbook.nytimes.com/link to original article

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