New York Consumer Protections: New York bans payday lending through its 16% civil usury and 25% criminal usury caps. The Department of Financial Services aggressively pursues illegal online payday lenders. Consumers have strong protections under state law and can file complaints with DFS or the Attorney General.
Interest Rate Cap: New York usury cap: 16% civil usury; 25% criminal usury; payday lending banned.
Payday lending is banned in this state.
Key Regulations: - Payday lending is banned; civil usury cap of 16% and criminal usury cap of 25% make it illegal.
- The Department of Financial Services actively enforces against online payday lenders targeting NY residents.
- Licensed lenders under the Banking Law may charge rates agreed upon for certain loan types.
- The NY Consumer Protection Act and General Business Law Article 22-A protect consumers.
Federal protections: The FCRA gives you the right to dispute inaccurate credit report information for free. Credit repair companies cannot charge before performing services (Credit Repair Organizations Act).
Free resources: Get a free credit report annually at AnnualCreditReport.com.
File complaints with New York Attorney General Consumer Frauds Bureau.
