Saturday, August 10, 2013

Crackdown on Payday Lenders that Skirt Restrictions

Saturday, August 10, 2013

Payday lenders have operated below the radar for years. Not anymore. These days at least 7 state and federal agencies are scrutinizing payday lenders, especially those making loans via the Internet.

Payday lenders have been flocking to the Internet for the past several years to sidestep state and local restrictions on their activities. Earlier this year federal bank regulators told banks and credit unions to think twice before getting into bed with payday lenders, especially those that skirt the law. Soon after, the regulators warned banks and credit unions that they would be scrutinizing deposit advance lending in future supervisory exams.