New York state regulators have reportedly taken action to discourage borrowers from accessing online payday loans with interest rates of more than 400 percent, The New York Times reported on December 2.
According to official documents obtained by the Times, Benjamin M. Lawsky, New York’s financial regulator, has sent subpoenas to 16 lead generation websites that sell consumer information to payday lenders.
The move cuts what the Times calls “a critical link” from payday lenders to customers. No lead generation companies responded to requests for comment by the media outlet.
For more on New York and its investigations into various financial services, read PYMNTS Senior Analyst Jeff Green’s full report on virtual currency regulation here.
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