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February 21, 2014. Debt collectors go after service members despite protections. By Daniel Wagner. March 11, 2014. At least six federal agencies including the Justice and Treasury departments are coordinating a broad probe of online payday lenders that charge enormous interest and fees to low-income borrowers who need quick cash.
The Justice Department and the Consumer Financial Protection Bureau have sent civil subpoenas to dozens of financial companies, including the online lenders, many of which are located on Indian reservations to avoid complying with consumer protection laws.
Also subpoenaed were banks and payment processors that do business cash advance online indiana them, according to government and industry officials familiar with the probe. The people spoke on condition of anonymity because they were not authorized to discuss it.
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