New York Payday Loan Law and Legislation

New York Payday Loan Regulations
Legal Status
Interest Rate (APR)
25% small loan cap

Payday lending is prohibited in New York.

It is a violation in New York to make payday loans either in-person, or by telephone, or online. Check cashing of post-dated checks is forbidden in the state; every lending business is required to have a license to operate in the state; state laws impose small loan cap of 25% APR for any loans. Debt collection or an attempt at debt collection on a payday loan is considered illegal as well.

New York Payday Lending Statutes

N.Y. Banking Law 340 et seq. outlines lending rules in the state:

  • A business or a person engaged in lending or in making loans and is required to be licensed. If the business or person solicits any loans as detailed in New York law, they are not to be regarded as a payday lender in the state based on isolated or occasional loan transactions that meet the requirements of the law.

N.Y. Banking Law 373 prohibits check cashers from giving payday loans:

  • A licensed lender may not advance or cash any monies on postdated checks or even draft or commence the business of transmitting money for transmission.

N.Y. Penal Code 190.40 sets the usury cap at 25% APR:

  • A person is guilty of criminal usury in the second degree when, not being authorized or permitted by law to do When a person who has not been authorized or otherwise permitted by law knowingly charges, receives money or other property as interest on a loan they have provided, or forbearance of money at rates above 25% APR, they are guilty of criminal usury in the second degree.
  • The crime of second-degree criminal usury is a felony of the E class.

Rates, Fees and Other Charges in New York

  • State laws impose a criminal usury cap that equals 25% APR for any loans; there is also a civil usury cap that equates 16% per annum.

Consumer Information.

More information about payday loan laws and regulations in New York can be found on the official website of the New York Department of Financial Services.

Regulator: Complaints & Information

New York State Department of Financial Services

Address: 1 State St, New York, NY 10004
Tel: 800-342-3736
File a Complaint:

Number of New York Consumers Complaints by Topics

According to CFPB Consumer Complaint Database

  • Fraud and threat ( 60 )
  • Charges from account ( 57 )
  • Not exiting debt ( 45 )
  • Not requested loan ( 18 )
  • Lender is not available ( 15 )
  • Credit rating ( 11 )
  • Loan not received ( 9 )
  • Loan to return ( 7 )

[Updated As of February 2020]

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