NY Regulator Urges NACHA To Get Tougher On Payday Loans

Law360, Washington (January 14, 2014, 5:36 PM EST) -- New York financial regulators on Monday urged a bank industry group to use tough new measures to prevent online payday lenders from accessing consumer bank accounts via the automated clearinghouse network banks use to process transactions.

New York Department of Financial Services Superintendent Benjamin Lawsky sent a letter to NACHA, which manages the ACH network, and praised the group for its proposed rule amendments that would strengthen its authority to curb illegal lending practices. However, Lawsky maintained that the proposed safeguards don't go far enough and...
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