Although many lenders market payday loans as a great way to get the funding you need quickly, New York has banned the practice throughout the entire state, including New York City. There are other options, though, so read our guide to figure out what you’ll need to do if you need extra cash.
So there are no payday lenders in NYC?
The state of New York prohibits payday lending in all forms, including over the phone and online, so you won’t be able to get a payday loan if you live in New York City. New York Penal Code 190.40 sets the usury rate at 25%. This means that all loans must have an APR at or below this rate if they are to remain legal.
Short-term loans include a broad category of credit options, including payday loans, auto title loans and high-interest installment loans. While New York hasn’t specifically banned the practice, the cap on interest keeps these lenders out of the state.
Many consumer advocate groups and lawmakers view payday lending rates as predatory and designed to keep people trapped in debt. Because of this, check cashers can’t give loans and all small loan lenders can’t finance a loan with more than a 25% annual percentage rate (APR).
What other borrowing options do I have in New York City?
Talk to your creditors. Your creditors may be more understanding than you think. Contact them to see if you can get an extension on your payment or lower your monthly bill. These are quick ways to deal with your debt while making sure you can meet other financial needs.
Look into local assistance programs. If you’re constantly struggling to make ends meet, New York has programs like the Food Bank for New York City and the Earned Income Tax Credit (EITC) that can help you work through your bills.
Request a loan at a local bank or credit union. Although your credit will play a large role in the decision, a local bank or credit union may look at your other circumstances when decision to give you a loan. If you’ve been a member for a long time, consider petitioning for a loan.
Compare alternative borrowing options in New York City
Another option is to apply for a secured credit card or low-credit-score-approved credit card.A credit card can’t get you cash today, but cards like the Deserve® Classic Card can help you get the line of credit you need to make purchases and build credit history in the process.
Entrust Cash Advance. 263 W 38th St, New York, NY 10018
Merchant Cash Advance. 2 W 46th St #205, New York, NY 10036
Provident Loan Society of NY. 346 Park Ave S, New York, NY 10010
Fast Cash Pawn Shop. 3401 Broadway, New York, NY 10031
Cash Advance Manhattan NY | Premium Merchant Funding. 40 Wall St Suite 501, New York, NY 10005
New York Payday Loan Solutions. 180 Church St, New York, NY 10013
Imperial Advance. 247 W 36th St, New York, NY 10018
Credit Cash. 335 Park Ave, New York, NY 10022
Modell Collateral Loans. 169 E 116th St, New York, NY 10029
Frequently asked questions
No. New York law applies to all residents, even if they aren’t present in the state. If you visit a state where payday lending is legal, you still won’t be able to take out a payday loan.
Because tribal loans are given by companies operating in their own sovereign nation, New York can’t ban these loans. However, it’s up to the discretion of the tribe whether or not it wants to lend in the state. Check to make sure the tribal lender you’re looking at operates in New York before you apply.
You can contact either the Department of Financial Services or the Consumer Financial Protection Bureau if you have a problem with any lender in the state.
Aliyyah Camp is a writer and personal finance blogger who helps readers compare personal, student, car and business loans. Aliyyah earned a BA in communication from the University of Pennsylvania and is based in New York, where she enjoys movies and running outdoors.
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