Payday loans in New York

Are payday loans legal in New York?

Payday loans are not legal in New York. 25% criminal usury cap (16% civil)

The governing law is N.Y. Banking Law § 340; N.Y. Penal Law § 190.40. New York State Department of Financial Services licenses lenders and takes complaints.

Why you will not find a licensed payday lender in New York

Payday loans are not legal in New York. 25% criminal usury cap (16% civil)

A company that advertises payday loans to New York residents is either breaking state law or claiming that the law does not apply to it, as some online and tribal lenders do. Loans made in violation of state law may be void or uncollectable, but getting your money back can still mean a fight.

Before you deal with an online lender

1. Look the company up with New York State Department of Financial Services. No license, no loan.
2. Never pay a fee up front to get a loan. That is the mark of an advance-fee scam.
3. Read the agreement for the finance charge, the APR and the due date before you give out bank details.

If you cannot repay a loan in New York

Contact the lender before the due date and ask for a payment plan in writing. If a lender or collector breaks the rules, file a complaint with New York State Department of Financial Services and with the CFPB. Our guide to what happens if you don’t pay covers each step.

Lower-cost options in New York

• Credit union payday alternative loans (PALs): $200 to $2,000 at no more than 28% APR.
• A payment plan with the landlord, utility or hospital you owe often costs nothing.
• Local assistance: dial 211 for rent, utility and food programs near you.

See all payday loan alternatives or work out a loan’s price with the cost calculator.

How New York got here

New York’s criminal usury limit is 25% a year (16% for civil usury). The Department of Financial Services has fined lead generators that marketed payday loans to New Yorkers.