It is nice to see some states take a stand against companies who take advantage of people.
I am happy to report that there are no more payday loans in New York.
Any payday loan activity that takes place in this state now will be illegal, and subject to strict enforcement from New York Attorney General Eric Schneiderman.
TheMire.net announced today that the state of New York has settled cases with five payday loan companies charged with violating usury and licensed lending laws.
Companies affected
Northern Resolution Group LLC, V&R Recovery DBA Alexander & Stefano, Erie Mitigation Group LLC, RJA Capital Inc, and Westwood Asset Management LLC all came to a settlement with the New York Attorney General.
The companies agreed to pay $279,606 in restitution and $29,606 in penalties. A very small sum compared to the amounts these companies have made off the less fortunate, but it is a start.
All of the above companies are now banned from collecting payday loan monies from New Yorkers, and one even had to reverse 8,550 negative credit reports it had made to credit reporting bureaus on New York residents.
A Trend?
We sure could use this kind of action in the payday loan industry, and any other industry that takes advantage of the poor and underprivileged.
Some more encouraging news involving these loan companies was also reported yesterday.
Under the order of the mayor of New York, the Department of Financial Services has reported sending out 35 letters to payday loan companies.
The letters are asking them to stop doing any kind of payday loan business online or in any other way in the state of New York.
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Summary
While it is good to see government officials finally taking serious action to combat this kind of legal thievery, people will still be exposed to these loans. As long as this keeps happening we will be here to help get people out of the payday loan trap and back on their feet financially.
If you are caught in the payday loan trap give us a call at 1-877-280-5100 or fill out our form for your free no obligation quote on how we can help.
Until we take all the profits out of these loans, these companies will continue to give them out.
Avoid these companies at all costs and do not let yourself become another trapped customer.
