New York Department of Financial Services Issues Subpoena to Payday Lender

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As part of its continuing focus on payday lending, the New York Department of Financial Services announced that it sent subpoenas to numerous online “lead generation” firms suspected of deceptive or misleading marketing of illegal, online payday loans in New York. Payday lending is illegal in New York, and although the lead generation firms do not typically make payday loans directly, the DFS suspects that the firms collect and sell consumers’ personal information to online payday lenders and other companies in violation of New York law. The subpoenas request a range of materials including marketing materials, contracts for sales of consumer information and privacy information.

IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this informational piece (including any attachments) is not intended or written to be used, and may not be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

Topics:  Department of Financial Services, Lead Generators, Marketing, Payday Loans, Subpoenas

Published In: General Business Updates, Communications & Media Updates, Consumer Protection Updates, Criminal Law Updates, Finance & Banking Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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