New York is a U.S. state which is located in the northeast of United States. New York State has a city by the same name. It is one of the original colonies that founded the United States. It is the 4th more populated state and around the 12th largest economies in the world.
Payday loans or small cash advances for a high rate of interest over a short period of time are illegal in New York.
The Law state:
“Licensed lender law applies but the interest rate is that agreed to by contract. N.Y. Banking Law 340 et seq. A check cashier licensee cannot make loans nor cash or advance any money on a post-dated check unless it is a payroll check. N.Y. Banking Law 373. Criminal law sets the usury cap at 25%. N.Y. Penal Code 190.40.”
The small loan rate cap in New York has been set at 25% per year. As this lending is not legal in the state, there are not any certified lenders found here, however, lenders from outside the state try to attract borrowers. Borrowers should avoid going for these deals to avoid any legal hassles or any other issues in event of non-payment. If any consumer feels that a lender is violating the above-stated law they can file a complaint at the New York State Banking Department.
Alternative to Payday loans in New York
Even though payday loans may not be legal in New York, consumers there may also need emergency cash in time of need. To take care of short-term cash advance needs you need to look into available alternatives.
Consumers will find many online lenders who will give an option of an online payday loan, however considering the legal status it is advisable for them to use one of the above options available.