The Truth About Payday Loans in Helena, New York
Payday loans, also known as cash advance loans, are popular in many states across the US, but they are prohibited by law in New York.
One might wonder why payday loans are illegal in New York. The answer is simple – it’s because the high-interest rates charged by payday lenders are considered predatory, and the State believes that such loans are harmful to residents.
However, despite the ban, some Helena residents may still be tempted to take out a payday loan. In this article, we will delve deeper into payday loans in Helena, New York, and provide you with essential information you need to know before considering a payday loan.
Understanding Payday Loans
Payday loans are small short-term loans that are designed for people who need quick cash until their next payday. They are typically offered by non-traditional lenders, rather than banks or credit unions.
To obtain a payday loan, you are required to write a post-dated check or provide the lender with your bank account information. You then receive the loan amount, which is typically a few hundred dollars or less, and you repay the loan plus fees on your next payday.
The fees and interest rates charged on payday loans are high, and in many cases, people end up in a cycle of debt, unable to pay off the loan on payday. This is why payday loans are considered predatory and dangerous.
Why Payday Loans are Prohibited in New York
The State of New York has prohibited payday loans to protect its residents from the harmful effects of these loans. Under New York law, it is illegal for lenders to make payday loans or advance cash loans to residents.
NY Department of Financial Services has put in place strict rules for lenders who violate the state’s laws. They face hefty fines, and some may lose their license to operate.
Interesting Facts and Statistics about Payday Loans in Helena, New York
- Payday loans are illegal in New York State
- New York caps interest rates on all loans at 16%
- There were no payday lenders registered in Helena, New York in 2020
- According to a study by the Center for Responsible Lending, payday lenders cost New Yorkers over $790 million in fees every year.
- Payday loans are banned in 14 states including New York.
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Although payday loans are illegal in New York, some residents may still find themselves in need of quick cash. For those, TheGuaranteedLoans can connect them with potential lenders in other states.
Please note that we are not a direct lender, but rather a connector service. We aim to facilitate your connection with potential lenders, and our application process is quick, easy, and secure.
Please visit our website to find out more about our services and to apply today!