Are you sure that New York legal for payday loans? I have many that I am unable to pay back and they are in a way overwhelming. How can I do? I'm a NY state resident. I borrowed some payday loans online in February. I've paid hundreds of dollars more than the principal amount. I don’t know how I will pay the loans off. Are you able to offer any advice as to what I should do? Contact us for more details Show less The small loans, sometimes known as "cash advance loans," "check advance loans," or "deferred deposit check loans," are a frequent pitfall for people. A charge of anywhere between $15 and $30 for each $100 borrowed is assessed for a credit of $300. The borrower is required to submit a post-dated photocopy of their check to the lender. The lender will electronically transfer a payment or all the remaining balance of the loan from the account of the borrower. As a customer service, a partial payment can be taken from the account. This is especially risky. The partial payment is then an ongoing installment that continues regardless of efforts made by customers to stop it. With rates so high and the term of the loan being so brief, there is no wonder that a large percentage of these loans are then rolled over by the borrower again and again until the fees accumulated equal an effective annualized interest rate of 390% to 780% APR depending on the frequency the principal is transferred. One of the most interesting facts about payday loans is that Wikipedia.org places payday loans under Loan Shark. According to Wikipedia.org's leading online encyclopedia it states that "if the loan sharking program has high interest rates and the credit program is one that traps borrowers, then this label is applicable." Quick Tip New York laws prohibit payday loans. Collectors of debts are not able to take from New York residents a payday loan. The New York State Dept. of Financial Services was directed by the governor to notify debt collectors that payday loans are illegal in New York. The New York State Department of Financial Services informed debt collectors that it was illegal to take payday loans in New York. You can file a formal complaint with the Dept. If you're an New York resident, and a collection agency attempts to recover a loan, you should contact the Dept. of Financial Services. The Federal Trade Commission offers a fantastic website that explains payday loan options. Consumer rights and payday loans A payday lender might try to recover the money. A payday lender could attempt to recover the balance when the borrower fails to pay. The details will be discussed in the following paragraphs. If you are unable to convince the payday loaner (or collector agency) to pay off the remainder of the debt, they can sue you in order to obtain a judgement. If the lender is able to file a lawsuit against you and obtains a judgement and is able to take the necessary steps to enforce the judgment through civil courts. Wage garnishment is the most popular method for enforcing any judgment. The list is not inclusive of calling your employer or contacting your neighbors. Nor is obtaining an arrest warrant. Failure to repay the loan is a civil issue that is not a criminal offence. Payday lender's use of check fraud to threaten customers is not uncommon. If the lender does not have evidence that the borrower did not intend to repay the loan, it is not substantiated. It is extremely difficult to show that the contrary is the case. Remember, no one has been arrested or imprisoned for debt in the United States since the Civil War. If a payday loan company acquires an account that is a borrower's account, the lender will be required to pay the balance back to the agency that collects the money. Editor's Note This page is not open for comments. Payday Loans provides detailed information about the process of obtaining payday loans. Check out the Bills.com resources for payday loans in California, Florida. Illinois. Massachusetts. Missouri. New York. Texas. To find out more about payday lending laws in those states, visit this page. A federal law referred to as the Fair Debt Collections Practices Act states that third-party collector agents must cease calling your phone after you have informed that they have been informed in writing. California, New York, Texas and Texas all extend the FDCPA regulations to include original creditors. Check out the advice if you're being Victimized by a Collection Agency to learn about the steps you can take if believe a collection agent is violating the FDCPA. If the payday loan company sells the account, the borrower could stop phone calls by writing a cease communication demand letter to the collection agency. This is commonly known as a cease-and-desist note. Sample cease-and desist letters are available on the Bills.com debt self help center. How can I handle payday loan in new york (http://daewooespero.ru) loan collection? To intimidate the borrowers, many payday loan lenders use intimidation tactics. But the fact that people are in debt doesn't mean that they're losing their rights as a consumer. As stated above, many payday lenders require borrowers to provide their checking account numbers in order that money can be withdrawn from the account of the borrower automatically through the Automated Clearing House (ACH). The payday lender will try to withdraw funds even if there isn't enough funds in the borrower's accounts. The borrower could be charged charges for overdrafts, and in the event that the same practice is repeated enough, the bank could shut down the account. Payday lenders who withdraw funds from borrower's accounts repeatedly are often addressed by the borrower shutting the account, and then opening another one with the same bank. This is only possible when all transactions are connected from the previous account to the new one by the bank. If this occurs the bank will simply go into the new account to take out the funds. It is essential to ensure that your bank doesn't allow electronic withdrawals to be taken through an existing account, and then transferred to a different one. For more details about your rights as a New York resident read the Bills.com Article New York Collection Laws. New York Payday loan New York has several laws against payday loans. New York General Obligations Law Section 5-501 sets the rate for civil usury at 16%. The limit for criminal usury is set at 25% in New York Penal Law SS 190.40, 190.40. New York law prohibits check cashers from cashing deferred checks. Payday lending is illegal in New York. How can payday lenders legally be operating within New York? New York payday lender partners with banks from deregulated states. These lenders provide loans via electronic funds transfers and claim that local banks are brokering loans. This is referred to as renta-bank lending. The New York City Dept. Consumer Affairs Tips about Payday Loans. This article discusses New York law as well as tips to avoid payday loans. The New York State Prevention of Predatory or Dangerous Loans is available. Find out more about payday loans. Find out more strategies and tactics for dealing with creditors at Bills.com's article on Debt Negotiation & Settlement Advice. Bills.com provides additional information on the Payday Loan Information section and addresses questions of readers regarding payday loan lenders in California, Florida. Illinois. Massachusetts. Missouri. Texas. If you fail to repay the loan on time the payday loan business has several legal remedies such as wage garnishment, levy, and lien. See the Bills.com Resource Collections Advice to find out more about rights for creditors as well as debtors. Check out the Bills.com Budget Guide and financial planning guide. They can assist you with your finances and help you budget and be prudent when managing your money.