When it comes to obtaining cash quickly, a payday loan seems like a good solution. However, if you’re a resident of Orient, New York, seeking a payday loan is not an option. That’s because they are prohibited in the state of New York.
What are payday loans?
A payday loan is a type of short-term loan that is taken out for a small amount of money and is typically due on the borrower’s next payday. The lender charges a fee for the loan in addition to the principal amount borrowed. These loans can be attractive to those who need cash quickly and have no other options, but they often have high-interest rates and fees.
While payday loans may seem appealing, they can be extremely risky and potentially trap borrowers in cycles of debt. Borrowers who cannot repay their loan on time may end up defaulting and facing additional fees and interest charges.
Why are payday loans prohibited in New York?
Payday loans are illegal in New York because they violate state law. The state’s usury laws prohibit lenders from charging more than 25% interest per year on loans. Payday loans typically have much higher interest rates and fees, which makes them illegal.
New York’s Department of Financial Services has taken a hardline stance on payday loans and has actively pursued enforcement actions against companies that offer them illegally in the state. The department has also issued cease and desist orders to companies that violate the law.
What are the alternatives to payday loans in Orient, New York?
While payday loans are not an option in Orient, New York, there are other alternatives to consider. These include:
- Credit unions: These nonprofit organizations offer loans with lower interest rates and smaller fees.
- Personal loans: These loans are offered by banks, credit unions, and online lenders. They typically have lower interest rates and longer repayment terms than payday loans.
- Credit counseling: A credit counselor can help you create a budget and negotiate with your creditors to reduce your monthly payments.
- Government assistance: If you’re struggling to pay your bills, you may be eligible for government assistance programs like SNAP or LIHEAP.
Interesting facts about payday loans in Orient, New York
- In 2019, the New York Department of Financial Services issued cease and desist orders to 35 online lenders who were illegally offering payday loans in the state.
- Between 2015 and 2018, the department’s enforcement actions against payday lenders resulted in more than $12 million in restitution and forgiven debt for consumers.
- According to a survey conducted by the National Consumer Law Center, the average interest rate for payday loans in New York was 574% in 2017.
Apply Now
Although payday loans are not available in Orient, New York, you may still need financial assistance. At TheGuaranteedLoans, we are a connector service that can help you find a lender who offers personal loans that meet your needs. We work with a network of trusted lenders who offer loans with reasonable interest rates and flexible repayment terms.
To get started, fill out our online application. We’ll connect you with lenders who are interested in working with you. Remember, TheGuaranteedLoans is a connector service, not a direct lender, and we do not offer payday loans.