New York Payday Loan Laws and Legislation
In the state of New York payday lending is considered illegal and the operation of such companies is prohibited. There are laws in the state code that regulate these issues and they are rather strict ones. All the measures taken to limit the activity of payday lending companies are meant to protect customers from usury and indecency of lenders charging 3-digit numbers as APR. Such interest rates are extensively high and can become a real financial problem for many borrowers. Moreover, New York State allows the operation of some licensed businesses - all the others are considered acting illegal and can be held liable in court. A person considering taking a payday loan in New York should know the following particularities of such lending as it is stated by the law: check cashing of post-dated checks is forbidden in the state; every lending business is required to have a license to operate in the state; state laws impose criminal usury cap for any loans that equals 25%; there is also civil usury cap that equates 16% per annum and that number should not be exceeded.
Although payday lending is considered illegal in the state, it does not stop the lenders operating online. They claim that if their physical location is not in the state of New York, then they are eligible of offering their services freely. However this is not to be the case. Internet lenders no matter of their physical location should adhere to state laws where they are located and licensed and cannot offer services countrywide. Unfortunately, such transactions are very hard to monitor and the operation of these companies is not easy to restrict let alone identify their true location sometimes.
The only thing a borrower can do in case he or she took out a loan from such an unlicensed company is to file a complaint against them with the New York State Banking Department. Perhaps, you will end up repaying the principle amount of the loan without interest and charges if the illegal status of the operation is proved.
Taking into consideration the fact that payday loans are very profitable and popular businesses in many states and also the ability of illegal companies to operate without being detected, it is strongly advised to stay away from such loans and companies. If you decide to take a payday loan in a different state, where the operation of payday lending companies is allowed, make sure that you learn the laws and this is a reliable company to deal with.
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Cash transfer times vary among the different lenders and not all offer one hour transfer service.Payday loans are not available in all 50 states and the list of participating states may change at any time and without notice.