New York Payday loans laws

Are you considering an New York City payday loan, or any other type of online loan? Here are some of the things you should know.

The state of New York's payday loans are not permitted. payday loan new york (bars-karate.ru) loans aren't allowed to be obtained in person, online or by telephone. The law also bans debt collectors from attempting to collect payday loan debts. New Jersey is also against the law.

But, a registered New York lender may offer an loan in a very small amount. Rates are restricted to 25 percent APR.

To report on payday loans issued in New York City, you are able to contact the Department of Financial Services.
Payday loans in New York: Why is it Illegal?

Borrowers often can't afford to repay the loan on time due to its temporary nature. This can leave borrowers in financial debt.
Borrowers can extend or renew their loans in the event that the loan isn't repayable within the timeframe agreed upon. These transactions can be subject to fees.
The APR on payday loans are extremely high, around 400% or higher;
Insufficient funds fees can be added to the account of a borrower in the event that it is not carrying the required balance.

Other Online Loan Types Are Available

New York law prohibits payday loans, however other loan types may be offered.

You can apply online for personal loans, get credit cards or even take out a traditional loan from the bank.

Above, you can compare the various loan options available online in New York.
The laws that govern Lending in New York

The state bans cashing checks for postdated check. Before any lending business can begin its operations they need to first acquire a license.

The state laws place the loan limit at 25. The New York banking law has set a cap on civil usury which is 16% per annum.

Remember that it is always advisable to go through all the documents including fine print before you apply for any type of credit. You should have a plan in place to repay your loan promptly to avoid getting into debt.

We seek out lenders who offer full transparency and have a the track record of making loans that are successful. We're always seeking ways to improve our comparisons and are confident in the options we offer.

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