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More than half of the debits were rejected by consumers and their banks. The overall rate reported by the Federal Reserve is about one-half of one percent. The bank lost its charter and was dissolved. Regulators also are using bank oversight examinations to drive a wedge between banks and the online payday lenders they serve.
They are warning banks during routine examinations to avoid the reputational risk of being tied publicly halifax cash loans south africa an unpopular industry, whether by financing loans or processing payments for lenders. The tactics are similar to those the government used in its successful campaign in 2011 to quash the online poker business, whose revenues had mushroomed to billions of dollars a year. The effort culminated in raids of the three biggest gambling sites and the arrests of their owners.
The government shut down about 76 bank accounts in 14 countries and eliminated five domain names. The companies were charged with bank fraud and money laundering.
Before the raid, an agent who represents poker players told CNBC, the poker industry was aware only that authorities were investigating their relationships with payment processors.