Thirteen members of Congress recently wrote to U.S. Attorney General Eric Holder, encouraging the DOJ to continue vigorously reviewing the potential for banks and third-party payment processors to facilitate predatory lending, financial scams, payment fraud and AML violations. The letter highlights the importance of detecting red flags, the high risk of predatory lending in connection with lead generators and possible danger of accounts with frequently contested debit withdrawals. The letter also warns of firms that do not maintain a presence in the U.S. or that use shell corporations to evade the law.
Following the DOJ’s win in the Four Oaks Bank Settlement, the letter is the next chapter in Operation Choke Point as Congress joins the ongoing probe against payday lending.
More information may be found here.