New York Payday Loan Laws

Are you considering a New York payday loan or another type of online loan? Here's some details.

Payday loans are illegal in New York State. The state bans the offering of payday loans in person, through a phone line or via the internet. It's also a crime for debt collectors to try to collect debts for the basis of a payday loan. New Jersey is also a violation of the law.

However, you can take out an small loan in New York from a licensed lender with rates that will be capped at 25% APR.

The Department of Financial Services is your supervisor should you be concerned regarding payday loan loans in New York.
What is the reason Payday Lending Illegal in New York?

Borrowers may find it difficult to repay the loan due to its short term nature. This could lead to debt-trapping.
The borrower may be asked to extend or renew the loan's term in the event that the loan is not able to be repaid in full at the end. These transactions can incur charges.
The APR on payday loans are very high, ranging from 400% or higher;
Additional charges may be incurred if the account of the borrower doesn't have the amount required.

Other Type of Online Loans Are Available

Although payday loan new york (japanpopmusic.ru) loans are not legal in New York City, there are other options for loans.

It is possible to apply online for personal loans, apply for credit card or even take out a traditional loan from a bank.

This page lists the complete list of online loans that are available in New York.
New York Laws that Regulate Lending

The state prohibits the cashing of checks more than 60 days old. Before any lending company is able to begin operations they need to first acquire a license.

The state laws set an upper limit on loans that is 25 percent. The banking law in New York has set a 16% annual civil usury cap.

When you are applying for any credit, it is recommended to take the time to review all documents. To avoid accumulating debt it is also important to have plans to repay the loan in a timely manner.

We are looking for lenders who are open and transparent, with a track record which has proven efficient in lending. We continue to improve our analysis, but we are confident that we have the ability to change to the market.

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