Payment Group Says U.S. Banks Can Work With Legal Online Lenders

This is good news, but is it the reality?  Bloomberg writes: Payment Group Says U.S. Banks Can Work With Legal Online Lenders.

I’m sure if you’re processing through Bank of America and you’re Cash Net USA it is, but most lenders can not get an account with a major bank.  They’re stuck going through 3rd party processors.  The stakes are so high for the participating banks, why would they put their charter in harms way over a perfectly legal, online lender processing a couple of thousand dollars worth of payment a day?

This situation stinks and it’s creating a huge domino effect.  In the process of going after off shore and tribal lenders, Benjamin Lawsky and the New York Department of Financial Services has intimidated banks into not doing business with any type of online consumer lender, licensed or not.  How do these 3rd party processors fight back when they’re getting singled out?

You would think there are enough crooks on Wall Street for these people to chase.  Here’s some advice, find the next Bernie Madoff and stop preaching from your soap box.  We get it, you want to by Mayor of New York in ten years and this is a cheap and easy way to get your name in the papers.

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