[miked]

the green sheet wrote something about the fdic cracking down on processors for working with online lenders. didn't think it was related to our industry until i saw merchant cash advance mentioned at the bottom http://www.greensheet.com/breakingne...news&ad_id=143
i don't know how to find the url of it, but it is the breaking news story right now. "Feds call for greater due diligence" is the name of the headline

looked up more stuff and found something about lenders that are licensed being threatened to lose their ability to ach over federal and state pressures. http://www.onlinelendersalliance.org...ne-Lenders.htm

[mfs01]

It looks like they are going after the processing companies, not the cash advance guys.

[Chambo]

many cash advance firms are licensed lenders in certain states

[miked]

many cash advance firms are licensed lenders in certain states

yeah but the online lenders alliance article say that the lenders under attack are licensed and legal but that it doesnt' matter.

[AndyYSCISOdept]

If you read the updated information and speak to people involved. (I happen to have an uncle who is a Federal Prosecutor dealing with primarily White Collar Crime) He told me, "Dont worry about it, if your Cash Advance company is licensed and operating above board then we have no beef wioth you."

[MCAVeteran]

the article is aimed more at the payday loan industry, primarily indian tribes operating outside state usury laws. Their def is heat coming down on the banks thats support online payday loan merchants as well. investors have been pulling away from online payday loan companies for awhile now due to the banks being audited.

http://online.wsj.com/news/articles/...54411043000772

[Gini Co]

If you read the updated information and speak to people involved. (I happen to have an uncle who is a Federal Prosecutor dealing with primarily White Collar Crime) He told me, "Dont worry about it, if your Cash Advance company is licensed and operating above board then we have no beef wioth you."

Shew, OK, Andy's uncle said he has "no beef" with the industry. Now everybody get back to work..

[jbrown]

Payday lenders are licensed and highly regulated. If the regulators ever start focusing on merchants that have 3,4,5 daily ACH's coming out from high cost lenders, that could be a problem. Fortunately the subset of merchants that have that issue is very small.

[Gini Co]

Payday lenders are licensed and highly regulated. If the regulators ever start focusing on merchants that have 3,4,5 daily ACH's coming out from high cost lenders, that could be a problem. Fortunately the subset of merchants that have that issue is very small.

Payday lending is on the verge of and in many states already has been regulated into extinction. Regulators are not concerned so much with the mechanism by which funds are withdrawn (ACH) but rather the triple digit APR (equivalent) associated with MCA. And there is no one is this industry who is not originating 50%+ APRs on a portion of their portfolio. No one. That is where the regulators are focused.