State regulators say a company has agreed to stop generating leads for payday loans in New York and pay a $2.1 million penalty. TV personality Montel Williams has also signed the agreement saying he'll stop endorsing MoneyMutual loans in New York.
The Department of Financial Services says an investigation found Selling Source, doing business as MoneyMutual, marketed illegal online loans to New Yorkers.
Payday loans are short-term advances against a borrower's paycheck and usually carry high interest rates.
New York's interest rate limit is 16 percent.
The consent order says the company acknowledges its typical annual percentage rate on a 14-day loan is "somewhere between 261 percent and 1,304 percent."
A spokesman says the investigation found no violation of law by Williams.
Calls to Selling Source were not immediately returned.
© 2015 Associated Press
