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Internet Based Payday Lender Agrees to Pay $1 Million Fine to New York

One Million DollarsOne news article on the SRNNews.com platform stated that an Internet-based company has agreed to pay a $1 million penalty to the State of New York and stop generating leads for payday loan lenders in the state.

Chris Kay, who is the CEO of Blue Global LLS of Scottsdale, Arizona, agreed to the settlement that was initiated by New York’s Department of Financial Services (NYDFS). The case is notably the first of its kind by the NYDFS. According to the report, the enforcement of the penalty is making it clear that companies must adopt certain regulations in order to secure personal customer data about loan applicants.

Kay made a statement about the ruling. He said, “Reaching this agreement is in our company’s and . . . stakeholders’ best interests, and we will be complying fully with the terms of the consent decree.”

According to the NYDFS investigation, Blue Global misrepresented itself to customers by saying that it offered security for personal details submitted to its sites and that the security was “completely . . . guaranteed.” However, the opposite was true as the company did not have any security measures covering the sharing of sensitive information with third parties.

Information generated from potential borrowers included personal details on almost 200,000 New York residents. The NYDFS said names, bank account information, and e-mails were made available to scammers for fraudulent purposes. Plus, Blue Global marketed quick payday loans to New York residents online, even though the practice is illegal in the state.

New York payday loan applicants heard from scammers after they filled out payday loan contact details on the Blue Global website. As part of the agreed settlement, Blue Global must disclose in future ads that its services cannot be instituted in the state of New York.

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