Posted by: Jeff Brownlee
August 12, 2013 (Washington, D.C.) – Lisa McGreevy, President & CEO of the Online Lenders Alliance (OLA) today made it clear that the group will fight all attempts by state and federal governments to pressure banks and payment processors to stop processing legal, consumer-authorized transactions.
“We are weighing all options to address unprecedented government pressure on banks and ACH processors to reject transactions authorized and requested by consumers,” McGreevy said.
The New York State Department of Financial Services (NYSDFS), the U.S. Department of Justice (DOJ) and other federal regulators have begun a concerted effort to pressure banks and payment processors to stop processing legal transactions authorized by customers and provided by legal and compliant OLA members.
“OLA members are legal, fully compliant companies who abide by all federal consumer protection laws and a strict set of industry-leading best practices to ensure customers’ short-term credit needs are fulfilled fairly,” McGreevy added.
All OLA members are licensed or registered with, and regulated by, a state, international or tribal government regulator, and all are required to comply with U.S. federal consumer protection requirements and OLA’s Best Practices to remain a member of OLA.
McGreevy stressed that those who will truly be hurt by the government’s efforts are the consumers who rely on online, short-term loans for their credit needs.
“Millions of consumers nationwide are going to the Internet to find short-term credit to meet the immediate needs of their families. For years online lenders have been providing our customers these online loans from the safety and security of their homes,” McGreevy said. “Government efforts to cut these customers off from this credit option will force them to more expensive choices like bank overdraft, late payment or utility reconnection fees.”
The Online Lenders Alliance is a professional trade organization representing the growing industry of companies offering consumers small, short-term loans online. OLA member companies abide by a list of Best Practices and Code of Conduct to ensure that customers are fully informed and fairly treated.