House Republicans are accusing government officials of “intimidating” banks and electronic payment processors into to ceasing doing business with some online lenders.

In a letter sent last week to the Department of Justice and Federal Deposit Insurance Corp. that was reviewed by the Wall Street Journal, 31 GOP lawmakers accuse the government agencies of trying to cut off a legitimate business activity – high interest loans made over the Internet. …

DOJ officials say the crackdown is not aimed specifically at online lending, but rather a wide range of allegedly fraudulent merchants including offerings to erase debt and work-from home schemes.

Still, the House lawmakers, led by Rep. Blaine Luetkemeyer (R., Mo.) cry foul, accusing the government of “intimidating some community banks and third party payment processors with threats of heightened regulatory scrutiny unless they cease doing business with online lenders.”