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NY Subpoenas 16 Marketers In Payday Loan Probe


New York financial regulators say they've sent subpoenas to 16 online firms suspected of deceptive marketing by generating leads for illegal payday loans.

The Department of Financial Services says the firms collect and sell personal information to payday lenders and other companies in violation of state law.

Those short-term loans are typically advances on a paycheck with high interest rates.

Financial Services Superintendent Benjamin Lawsky says they have received complaints from New Yorkers about lead generation companies.

In August, the department told 35 companies to stop offering illegal payday loans online in violation of state law and says this week that at least 23 have stopped doing business in New York.

Letters were also sent to debt collectors in New York, telling them not to collect on illegal payday loans.

Copyright 2013 Associated Press. All Rights Reserved.