Payday loan companies have started using debit cards as ways of getting paid for online customers loans.
New York State is tackling this by partnering with Visa and MasterCard to fight this practice.
These loan companies debit card loans take a hit because the two major issuers of debit cards are working with the State of New York to ban this form of payment.
With online payday loans being illegal New York State this is good news for those who are still being hounded by these loan companies looking to continue payment on their defunct payday loans.
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Why ban payments?
Online payday loans are illegal in New York and the loan companies have come up with a way to get customers to give them their debit card numbers and use them as payment forms when the customers payment is due.
This practice of asking for debit card numbers by the loan companies has now been taking place in all 18 states that ban online payday loans and New York is again leading the charge in taking action.
Visa and MasterCard take action
The Department of Financial Services said they will collect information on what companies are trying to use the debit networks and Visa and MasterCard will then block all transactions involved with this practice.
As word gets out to other states that have banned online payday loans one can guess this practice will become to norm.
As more and more states take action and ban these loans, hopefully, the payday loan companies will abandon this practice.
Unfortunately, they will move on to another way of getting money out of people.
We at Help With Payday Loan Debt are happy with this partnership between New York State and Visa and MasterCard.
We hope this becomes the standard in dealing with illegal online payday loans.
If you have been asked for your debit card numbers by these companies, do not give them out and avoid these companies at all costs.
We hope this information helps you in dealing with payday loans!
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