Legal firm Klein Moynihan Turco LLP posts that ”New York Governor Andrew Cuomo has increased enforcement efforts against payday lenders and recently widened the net of potential defendants to include marketers of payday loans, in addition to the payday lenders themselves.”
“Payday loans have been illegal in New York State for many years – as are any loans on amounts under $250,000 with an interest rate above 16% – but online payday lending operations have been lending to New York residents despite the prohibition. While many payday lenders and marketers believe (or argue) that New York’s ban on payday lending does not apply if the loans are offered or advertised over the Internet, this belief is mistaken. According to Governor Cuomo, the use of the Internet as a medium for offering and/or marketing payday loans does not relieve the companies of liability.”
It could be time for marketers to get out of the payday business. With the FTC cracking down on text message marketing, a favorate in the payday market and event Google hating on payday now could be the time to step out. You might also want to look at the list of companies being subpoenaed, if they pay your commissions every month they might have troubles in the future.
On the other hand people need short term loans. With these companies in trouble there could be a great gap in the market!
Governor Cuomo subpoenaed 16 lead generation companies .
Read more by Klein Moynihan Turco LLP http://www.kleinmoynihan.com/blog/new-york-expands-payday-lending-industry-investigation-to-focus-on-marketers/
Murray Newlands is an online marketing industry veteran, and the founder of TheMail.