NC Bank Deal Marks Start Of Online Payment Crackdown

Law360, New York (January 10, 2014, 6:29 PM EST) -- A small North Carolina bank's $1.2 million settlement Thursday of allegations that it facilitated billions of dollars in abusive online payday loans is the first of what will be many resulting from the U.S. Department of Justice's “Operation Choke Point,” an attorney for the bank said.

The Justice Department issued a slew of subpoenas in the spring that opened a broad crackdown on banks, third-party payment processors, and financial institutions that facilitate online payday lenders and other allegedly abusive Web-based businesses. While the Justice Department has...
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