With the current state of affairs and many people being out of work, people are looking for alternative means to pay their monthly bills. Some are looking for lenders to help them in this difficult time. Here are some important things for New York State (NYS) residents to know.  

The New York State Attorney General advises consumers victimized by these practices may be entitled to relief under State and Federal law. The New York State Attorney General’s office investigates allegations of predatory lending practices and, if appropriate, will commence litigation to enforce compliance with the law. If you believe you are a victim please file a complaint here.

What is the usury (interest) rate in NYS?

In New York, charging usury greater than 16 percent annual, but less than, or equal to 24 percent is civil usury. Interest rates of 25 percent or more is criminal usury. Despite the New York usury laws, lenders frequently provide loans at higher rates, often between 350 and 650 percent. 

Payday loans are illegal in NYS. It is a violation of NYS law to make payday loans in-person, by telephone, or over the Internet. It is also illegal for a debt collector to collect, or attempt to collect, on a payday loan in New York State.

NYS Department of Financial Services provides the following advice: 

If you are struggling to pay your bill:

▪ Ask your creditors for more time. 

▪ Find out what they charge for late payments, finance charges or interest rates since it may be lower than what you might end up paying for a payday loan.

▪ Work with a community development credit union or a non-profit financial cooperative, which may provide affordable small-dollar loans to eligible members.

▪ Ask for a salary advance from your employer, or borrow from family or friends.

▪ Consult social service agencies, they may have programs to help with food, housing, and home heating costs.

If you have any problems, including debt collectors contacting you about the transaction, contact DFS at (800) 342-3736 or File a Complaint.

If you are unsure about lending practices, please reach 716-858-6169 and we will assist you or put you in touch with what office can.

This information was brought to you by The New York State Attorney General and New York State Department of Financial Services Banking Division