Republicans Scold Regulators Over Consumer-Fraud Probe
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Republican lawmakers scolded the U.S. Justice Department and banking regulators for investigating banks and other firms that process payments for fraudulent merchants, a probe that industry groups say has harmed legitimate businesses.
The Justice Department’s initiative, called Operation Choke Point, is intended to combat fraud by businesses such as payday lenders and online gambling sites by cutting off their access to payment systems. Payday lenders and bankers say the initiative denies lower-income customers access to lending.