Department of Financial Services

new rules crack down on aggressive debt collectors
4:00 pm
Wed December 3, 2014

Debt Collectors Praise New Regulation In NY

New York finalized new debt collection regulations on Wednesday, making them some of the most debtor-friendly in the country.

The state Department of Financial Services wrote and revised the new regulations with the help of both consumer advocates and debt collectors, pleasing both constituencies.

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Regulators press payment network
6:39 pm
Thu November 13, 2014

Banks Agree To Block Payday Lenders

Four additional banks have agreed to block online payday lenders from accessing customer accounts in New York. The agreement comes as the banks' processing network remains silent on efforts to keep the illegal loans from crossing state borders.

Payday lending is generally illegal in New York and Connecticut because the loans, which can be as high as 500 percent, exceed both states' cap on allowable interest.

However, investigators in New York have received complaints that payday lenders are making these loans online.

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"hundreds of thousands may have been harmed"
2:12 pm
Tue October 21, 2014

NY regulators accuse top lender of repeated abuse

Bank regulators in New York are accusing the nation's largest subprime mortgage lender of errors that might have harmed hundreds of thousands of borrowers.

New York's Department of Financial Services accuses Ocwen Financial of backdating letters warning of foreclosure or unsuccessful loan modifications. This means that by the time a borrower receives a letter from Ocwen, it's already too late to do anything about it.

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Less stringent rules for startups
6:00 am
Wed October 15, 2014

Lawksy plans softer rules for Bitcoin

New York’s top banking regulator says he plans to relax pending rules set to govern Bitcoin and other virtual currencies. The more startup-friendly requirements come after criticism that the state has moved too quickly to regulate the new technology.

Futurists see virtual currencies as revolutionizing the financial industry the same way the Internet has revolutionized nearly everything.

New York was the first jurisdiction to introduce rules on Bitcoin. Regulators hope to mark the path for other jurisdictions to follow.

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Cracking down on lenders and debt agencies
5:55 pm
Tue September 16, 2014

New York moves to protect troubled borrowers

Chief Judge Jonathan Lippman proposes reforms to consumer debt cases in state courts with new filing requirements for collectors of so-called "zombie" debts.
Credit AP Photo

In separate actions, New York officials are cracking down on companies taking advantage of troubled borrowers. 

The Department of Financial Services issued subpoenas to nine lending companies in the state Tuesday. The state's bank regulator is investigating them for what are called "loan-to-own" schemes.

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