New York Payday Loan Laws

Are you thinking about a New York payday loan or another kind of online loan? Here's the information you should know.

New York State is prohibited by law from making payday loans. Payday loans are not permitted in New York State being made online, by phone, or in person. It is also a crime for debt collectors to attempt to collect the debt on a payday loan. Payday loans are also illegal in New Jersey.

But, you may obtain a modest loan through a registered lender in New York. Rates will be restricted to 25% APR.

The Department of Financial Services is the authority to regulate that you should consult if you believe payday loans are offered in New York.
Payday lending is not legal in New York.

Since the loan is short-term it is not possible for many borrowers to pay it back in time. This can leave borrowers in debt.
If the loan cannot be paid back at the end of the loan term, the borrower must extend or renew the term of the loan. These transactions can incur charges.
Payday loan APR is extremely high. It could be up to 400%.
The fee for insufficient funds is an additional charge in the event that the account does not have enough funds.

Other Type of Online Loans Are Available

Although payday loan new york loans are not legal in New York City, there could be other loan options.

Personal loans online can be used to obtain along with credit cards or a traditional loan from a bank.

Here, you'll find all the online loan options that are available in New York.
New York Laws that Regulate Lending

It is against the law in the state to cash postdated checks. Before launching their business each lending institution requires a license.

The laws of the state impose the loan limit at 25%, but not more than that. The New York banking law has implemented a civil usury limit which is 16% per year.

When you are applying for any credit, it is an excellent idea to go through all the documentation. You should have a plan in place to repay your loan promptly to avoid becoming indebted.

We seek out lenders who offer full transparency and have an extensive history of lending success and happy customers. We're always looking for ways to enhance our comparisons and we are confident about the loans we can offer.

To find the best personal loan in New York, use our loan comparison tool.