New York Payday Loan Laws

Are you considering getting a payday loan or another type of online loans in New York? Here's what you need to be aware of.

Payday loans are banned. The state prohibits payday loans being made online, by phone, or in person. It is also a crime for a debt collector to attempt to collect a debt for a payday loan. payday loan new york loans are also illegal in New Jersey.

But, a registered New York lender can provide the loan in a modest amount. Rates are limited to 25% APR.

Contact the Department of Financial Services if payday loans are being made in New York.
Why Is Payday lending illegal in New York?

Many borrowers are unable to repay the loan in date due to its temporary nature. This may result in being trapped in debt;
The borrower is able to extend the loan's duration or extend it if the loan isn't repaid on the due date. There are fees for each of these transactions;
Payday loans have an exceptionally high APR of around 400%.
If the borrower's account does not have the required amount, the borrower will be charged extra charges due to an the fee for insufficient funds.

You have choices to get other loans online

New York law prohibits payday lending, but other types of loans may be offered.

Personal loans on the internet are available in addition to a credit card or a traditional loan from a bank.

Check out the available online loan options for New York above on this page.
New York law governing lending

The state prohibits check cashing for postdated check. Before any lending business can begin its operations it must first get a license.

The state laws set an upper limit on loans that is 25 percent. New York banking law has established a limit on civil usury of 16 percent per year.

When you are applying for any credit, it is recommended to take the time to go through all the documentation. At the same time, have a solid plan to repay your loan on time to avoid accumulating debt.

We look for lenders that are transparent and have many years of lending success and happy customers. We are always improving our benchmarks, however, we are confident about what we can bring to market, and we know you'll be just as confident.

You can use our no-cost tool for loan comparison to determine the most suitable personal loans for New York.