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New York Cash Lenders
Top New York Payday Loan Cities
Brooklyn
New York Payday Loan Laws
In New York the law states that in order for a lender to offer payday loans in New York, they must be either a bank or the best be licensed as a small loan company. Currently there are no entities licensed by the banking Department of New York that lend payday loans. However, there are many out of state companies that offer payday loans.
Non-bank companies in New York that offer payday loans cannot charge an annual interest rate in excess of 25%. This law also applies to companies that are licensed under Article 9 of the New York Banking Law. Any payday advance lender that charges an excess of 25% in interest is in violation of the New York State Penal Code §190.40. Payday lenders often evade the state usury caps by partnering with banks, which are only subject to the usury laws in the state in which the bank is headquartered. This is how some payday loan companies get away with charging more.
In October 2002, the federal Office of the Comptroller of the Currency fined a major payday lender $250,000 for failing to safeguard customer files and thus compromising the consumers’ right to privacy. Since then NewYork legislatures have put in motion several resolutions that would protect consumers from payday loan companies selling their information to third parties.