Alert December 10, 2013

New York Department of Financial Services Issues Subpoena to Payday Lender

As part of its continuing focus on payday lending, the New York Department of Financial Services announced that it sent subpoenas to numerous online “lead generation” firms suspected of deceptive or misleading marketing of illegal, online payday loans in New York. Payday lending is illegal in New York, and although the lead generation firms do not typically make payday loans directly, the DFS suspects that the firms collect and sell consumers’ personal information to online payday lenders and other companies in violation of New York law. The subpoenas request a range of materials including marketing materials, contracts for sales of consumer information and privacy information.