State banking and consumer protection officials have ordered five payday lenders and their debt collector to stop taking payments on more than 100 allegedly illegal loans according to the Boston Business Journal. The lenders listed in the complaint are: Cash Call Inc., WS Funding LLC, GP Investors LLC, Novea Resource Management LLC and Western Sky Financial LLC.
The Division of Banks, in Massachusetts, claims to have issued hundreds of cease and desist orders since 2005. Currently, Massachusetts has a 23% interest rate cap on loans and a $20 administrative fee.
The loans in question have rates between 59% and 169%. Not sure what MA expects people to do if they can not get a loan at 23% or lower?
This is a good opportunity for the Division of Banks to survey the borrowers. I think it matters what these people think. I bet the majority of them want access to capital.
