Payday Loans in Lancaster, New York
Payday loans are prohibited in the state of New York. New York’s state legislature has enacted a set of laws which make it illegal to serve New Yorkers with payday loans.
The laws prohibit new payday advances, increase protections for consumers who have payday loans and attempt to decrease the cycle of debt. Payday loans are a type of short-term loan that is typically due and payable when the borrower receives his or her next paycheck.
State legislatures have taken action to restrict payday loans because of the high cost associated with them. The average payday loan, based on the APR, is approximately 400% interest, which is significantly higher than banks and other lenders that offer much lower interest rates.
Payday Loan Protections in New York
The New York legislature has moved to protect its citizens from the abuse of payday loans by passing a set of laws which protect borrowers from debt accumulation and abuse. New York’s payday loan laws cap the amount of interest lenders can charge to 25%, which is far below the average payday loan APR.
In addition, the laws also limit the number of loans that a borrower can have outstanding at any one time. The laws also create a cooling-off period between consecutive loans, which attempts to reduce the cycle of debt that borrowers can fall into.
Alternative Lending Options in New York
The good news is that even though New York has banned payday loans, there are still plenty of other lending options available to you in New York. According to the Department of Financial Services, borrowers in New York can look into getting a personal loan from a bank or a credit union, which typically offer lower interest rates than payday loans. In addition, borrowers also have the option of getting a loan from a peer-to-peer lender, or a loan from an online lender.
Frequently Asked Questions About Payday Loans in New York
Q: Are payday loans legal in New York?
A: No, the state of New York has taken steps to protect its citizens by making payday loans illegal.
Q: Are there other lending options available in New York?
A: Yes, there are plenty of other lending options available in New York such as personal loans, peer-to-peer loans and online lenders.
Q: How much interest can lenders charge in New York?
A: The state of New York caps the amount of interest lenders can charge to 25%, which is far below the average payday loan APR.
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If you’re looking for a loan in Lancaster, New York, TheGuaranteedLoans can help. We are not a lender, but we can connect you with lenders in New York who can provide you with a loan. Fill out our application for a loan today, and we’ll get you in touch with a lender who can help.