US Finance State Department issues enforcement against Malta 'payday loan' company

In its consumer warning, the DFI said earlier this week that the company is doing business as “cash transfer center” through a website called “zip19.com,” that provides payday loans via the internet – pointing out that “the company is located in Malta and is not licensed to do business in Washington.” In the same alert, the DPI warns consumers against loan scams.

Warning consumers “to verify the license of any lending professional”, the DFI said it has taken formal enforcement action against Northway Financial, but is unable to pursue additional action because it is located outside the United States.

Zip19.com is an internet platform through which one can get loan of up to $1500 within one day, as approval of loan is done instantaneously. For availing the loan, one has to provide information on personal employment, bank and reference details.

The only conditions for qualifying for a loan are that the individual be aged at least 18, be a United States Citizen, have a checking account, be employed, and receive his or her pay-check by direct deposit.

All loans by zip19.com are due back on your next payday to a maximum of 14 days. According to its website, zip19.com charges $19.98 per each $100 loaned – meaning it grants loans on a 19.98 per cent interest basis.

But despite sharing the same postal address with Northway Financial, zip19.com does not declare any affiliation with the lending company on its own website.

According to Northway Financial Ltd’s website, the lending company was established in 2005, and is operating under direct supervision of the Malta Financial Services Authority (MFSA).