New York regulators are taking aim at an alleged loophole that is allowing online lenders to charge interest rates of 500 percent or more on short-term loans, Dealbook reported on August 5.
Regulators have issued 35 cease-and-desist letters to companies that are purportedly violating state usury laws, which put a 25 percent cap on interest rates. Regulatory pressure is also being put on the banks that enable these companies to operate.
For more on the state’s actions in this developing legal battle, read the full report here.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More