Dec 2 New York State's financial regulator,
Benjamin Lawsky, sent subpoenas to 16 lead generator websites
that sell sensitive consumer data to payday lenders, the latest
development in a broader crackdown on the payday lending
industry, the New York Times reported.
Government authorities are trying to choke off the supply of
borrowers to online lenders that offer short-term loans with
annual interest rates of more than 400 percent, the newspaper
The subpoenas sent by Lawsky's office seek information about
the websites' practices and their links to the lenders, the
paper said, citing a copy of the confidential document it
Payday lenders provide small short-term loans at high
interest rates to help borrowers get to the next paycheck. But
they have come under scrutiny from U.S. authorities in recent
years amid concern about lax oversight.
Lawsky's office could not be reached for comment by Reuters
outside of regular U.S. business hours.
Last month, payday lender Cash America International
was fined to settle civil allegations that it improperly pursued
some customers' debt and overcharged military service members.