Report: Justice Department Targets Payday Loan Processors
The Justice Department is targeting banks and other companies that process payments for payday lenders and “questionable financial ventures,” according to The Wall Street Journal.
According to the report, banks and others who “handle payments for an array of financial offerings” have been issued subpoenas by the U.S. government.
“It’s a shift in strategy: Rather than just targeting individual firms, the government is now going after the infrastructure that enables companies to withdraw money from people’s bank accounts,” the report states.
In addition to payday lenders, the Justice Department and Federal Trade Commission are also targeting marketers that falsely offer jobs or the ability to erase debt online.
To read more about the investigation, click here.