The Best Loans in New York April 2024: Compare Loan Rates

New York Payday Loan Laws 

Are you thinking about getting a payday loan or other type of online loan in New York? Here is what you should know.

Payday loans are illegal in New York State. The state prohibits the making of payday loans in-person, by telephone or online. It is also a violation of the law for a debt collector to make any attempts to collect the debt on a payday loan. Payday lending is also illegal in New Jersey.

However, you can take out a small loan in New York from a registered lender, and rates will be capped at 25% APR. 

The Department of Financial Services is the regulatory authority you can turn to if you believe payday loans are being issued in New York.

Why Is Payday Lending Illegal in New York?

1. Due to its short-term nature, borrowers often cannot afford to repay the loan in time. This may result in being trapped in debt;
2. If the loan cannot be paid back at the end of the term, a borrower is forced to renew or extend the loan term. Fees are charged for each of these transactions;
3. The APR on payday loans are extremely high, around 400% or higher;
4. If the borrower’s account does not have the required amount, this results in extra charges in the form of insufficient funds fee.

Compare New York Loans at Financer.com

Financer.com helps you compare the best personal loans in New York and get the best loan rates from leading lenders.

We look for lenders that offer full transparency and have a long track record of successful lending and satisfied customers. We are always improving our comparisons, but are confident in what we can bring to market, and we know you will be as well.

Use our free loan comparison tool to find the right personal loan in New York and take the guesswork out of doing all the legwork yourself.