Commissioner Requests Assistance to Stop Illegal Online Payday Loans
The attached letter from Commissioner of Business Oversight Jan Lynn Owen requests that state chartered banks and credit unions work with the Department to cut off access to California customer bank and credit union accounts for illegal (unlicensed) payday lenders.
Illegal payday loans made over the Internet are made possible in California by credit and debit transactions that pass through the Automated Clearing House (ACH) network. Commissioner Owen urges state licensed banks and credit unions to monitor transactions with any unlicensed lender and immediately report potential violations to the Department.
The Department is actively pursuing, with Cease and Desist Orders, unlicensed companies who are offering payday loans to California consumers over the Internet in violation of California law.
For more information contact Patrick Carroll at patrick.carroll@dbo.ca.gov