N.Y. Targets Online Payday Lenders, Their Sky-High Rates

ByLipsky

New York state officials said they have uncovered 35 online companies that are offering illegal payday loans to consumers in the state, including some with annual interest rates as high as 1,095 percent.

Governor Andrew M. Cuomo said Tuesday that his administration has contacted 117 banks, and the organization that administers the Automated Clearing House (“ACH”) network whose board members include representatives from a number of those banks

Cuomo is requesting that the banks work with the New York State Department of Financial Services (DFS) to cut off the payday lenders’ access to New York customer accounts.

Payday loans over the Internet are made possible in New York by credits and debits that must pass through the ACH network.

The Cuomo Administration is requesting that those banks and the National Automated Clearing House Association work with DFS to create a new set of “model safeguards and procedures to cut off ACH access to illegal payday lenders,” said a statement by the governor’s office.

Payday loans are short-term, small-value loans that are typically structured as an advance on a consumer’s next paycheck.

Often, payday lenders debit only the interest and finance charges from a consumer’s account – even though a consumer may believe they are paying down principal, which effectively extends the length of the loan.

These loans are notorious for fees that equate to sky-high, triple-digit interest rates.

“Illegal payday lenders swoop in and prey on struggling families when they’re at their most vulnerable – hitting them with sky-high interests rates and hidden fees,” Cuomo said. “We’ll continue to do everything we can to stamp out these pernicious loans that hurt New York consumers.”

The following 35 companies received cease and desist letters from New York state officials for offering illegal payday loans to New Yorkers, the governor’s office said.

The DFS investigation found that a number of these companies were charging interest rates in excess of 400, 600, 700, or even 1,000 percent.

·  ABJT Funding, LLC, www.dollarpremier.com
·  Advance Me Today, www.advancemetoday.com
·  American Web Loans, www.americanwebloan.com
·  Archer Direct, LLC, www.archerdirectservices.com
·  Bayside Loans, www.baysideloans.com
·  BD PDL Services, LLC, www.bottomdollarpayday.com
·  Blue Sky Finance, LLC , www.extrafundscash.com
·  BS Financial Group Inc., www.paydayaccelerated.com
·  Cash Jar, www.cashjar.com
·  Cash Yes, www.cashyes.com
·  Discount Advances, www.discountadvances.com
·  DMA Financial Corp., www.qloot.com
·  Eastside Lenders, LLC, www.eastsidelenders.com
·  Fast Cash Personal Loans, www.fast-cash-personal-loans.com
·  Golden Valley Lending, www.goldenvalleylending.com
·  Government Employees Credit Center, Inc., www.cashdirectexpress.com
·  Great Plains Lending, LLC, www.greatplainslending.com
·  Horizon Opportunities, LLC, www.paydaycashlive.com/horizon-opportunities-PAYDAY-LOAN
·  Loan Point USA Online, www.loanpointusaonline.com
·  MNE Services, Inc., www.ameriloan.com
·  MobiLoans, LLC, www.mobiloans.com
·  MyCashNow.com, Inc., www.mycashnow.com
·  National Opportunities Unlimited, Inc., www.itsmypayday.com
·  Northway Broker Ltd., www.myzip19.com
·  PayDayMax Ltd., www.paydaymax.com
·  Peak 3 Holding, LLC, www.peak.3.holdings.pay.day.loans.750cashs.com
·  Plain Green, LLC, www.plaingreenloans.com
·  Red Rock Tribal Lending, LLC, www.castlepayday.com
·  SCS Processing, www.everestcashadvance.com
·  SFS, Inc., www.oneclickcash.com
·  Sonic Cash, www.soniccash.com
·  Sure Advance, LLC, www.sureadvance.com
·  Tribal Credit Line, www.quickcredit911.com
·  United Consumer Financial Services, Inc., www.ezpaydaycash.com
·  Western Sky Financial, LLC, www.westernsky.com

john lipsky

I am the proprietor of eCreditDaily, a distinguished financial service institution that excels in the provision of payday loans. Our mission statement is to extend a dependable, expedient, and accessible financial lifeline to individuals who find themselves grappling with transient financial exigencies.

In the financial sphere, payday loans are often subjected to a negative perception. However, when utilized judiciously and for limited durations, they can serve as a valuable instrument to bridge the financial chasm between pay periods, particularly for those who may not have access to conventional credit avenues. At eCreditDaily, we staunchly believe in the potential of payday loans to provide immediate alleviation during times of unforeseen financial strain.

Our modus operandi is deeply rooted in a comprehensive understanding of our clients' needs, coupled with an unwavering commitment to responsible lending. We recognize that our clients, who seek our services, are often contending with unpredictable circumstances that necessitate immediate financial intervention. Consequently, we strive to deliver our services in a manner that is not only efficient and reliable, but also empathetic and respectful.

We pledge our commitment to transparency and integrity in all our transactions. Prior to sanctioning a loan, we ensure that our clients are fully cognizant of the terms and conditions of the loan, including the repayment schedule and any associated fees. We also advocate for our clients to borrow within their means and to employ payday loans as a short-term financial solution.

At eCreditDaily, we perceive ourselves not merely as a payday loan company, but as a partner in our clients' financial journey, equipping them with the resources they require to navigate unexpected financial hurdles. We are dedicated to assisting our clients in achieving financial stability and success, one payday loan at a time.

In summation, eCreditDaily stands as a beacon of hope for those who find themselves in a temporary financial predicament. We take pride in offering a service that, when utilized responsibly, can provide immediate financial relief and assist individuals in regaining their financial footing. We eagerly look forward to continuing to serve our clients with integrity, transparency, and a profound commitment to their financial well-being.

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