GUIDANCE TO AVAIL PAYDAY LOANS IN NEW YORK USA
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.
- Use your debit card to withdraw the amount from your saving or checking account. For you to have this option it is very important that you should always do financial planning such that you have funds available for an hour of need.
- Use our credit card to withdraw a cash loan – Credit card companies provide their customer’s an option for credit purchase as well as cash withdrawal with a limit imposed on both. A credit card holder has a certain cash withdrawal limit on their card. The holder can withdraw this amount of cash using the credit card. The cash limit can differ from month to month depending on how much the credit limit is used. You can view these limits from your latest credit card statement. The advantage of this option is like is that it is super-fast, you can actually just take your card and walk to an ATM and have the cash in hand.
- Personal loans are a great alternative to payday loans and a good way to set your finances right. Personal loans can start from around few thousand dollars and the maximum limit can vary for every lender. The interest rates also differ based on banks or lenders but usually fall in the 20-28% bracket. The only disadvantage with this is the time it takes to get the money in your account ready for use. Payday loans usually provide money within a day of the application whereas personal loans may take about a week or more.
- Consumers should check within their organizations for a possibility of salary advances. Many organizations these days offer salary advances which can be retrieved from employees in installments.
- Borrow the amount from friends or family.
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.