ACH Processors Dropping Like Flies

“The man who passes the sentence should swing the sword. If you would take a man’s life, you owe it to him to look into his eyes and hear his final words. And if you cannot bear to do that, then perhaps the man does not deserve to die.”
― George R.R. MartinA Game of Thrones

Bad days for online lenders.  What we never anticipated was the collateral damage caused by New York regulator Lawsky.  You would think that being licensed and operating legally inside your state, would protect you.  It doesn’t.

It seems that all the banks that processed for offshore and tribal lenders were subpoenaed.  If you work with these processors that clear through the subpoenaed banks, you’re in the line of fire.  You’ll be lucky if you get 30 days.

The industry has made a call to arms.  OLA is fighting diligently and using every resource available to them to clear this up.  The FDIC has taken a “shoot first ask questions later” approach to this situation and we’re all shocked.



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