New DOJ initiative investigates the bank/payday lender relationship

Operation Choke Point sees the government weighing action against several banks.

What’s the easiest way to keep shady lenders and sketchy online merchants from preying upon Americans’ banking information? According to federal prosecutors, the quickest remedy isn’t to go after the predators or the prey — it’s to go after the banks that fail to monitor these potential situations with customers.

In a new initiative, called Operation Choke Point, the Department of Justice (DOJ) is starting to weigh criminal and civil actions against several banks for this type of oversight failure. Government officials say the DOJ has sent out subpoenas to more than 50 payment processors and their corresponding banks in accordance with the initiative.

Assistant Editor

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Zach Warren

Zach Warren is Assistant Editor of InsideCounsel magazine, where he oversees online content submissions and administers InsideCounsel's enewsletters. Zach specializes in new media and multimedia...

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