Articles

Spotlight on the Short-Term Credit Crackdown

Law360

Short-term lending is under a new round of attacks, and this time some banks are feeling the heat. The New York State Department of Financial Services recently issued a letter to 117 banks requesting that they “choke off" automated clearing house (ACH) payment access to their customers’ accounts, and other state regulators have taken the same approach. If the loans cannot be repaid, the thinking goes, the loans will not be made in the first place and online lenders will be forced out of business.

Originally published in Law360, reposted with permission.