New York, the Empire State & Payday Loans
Posted on Sunday, July 12th, 2009 at 3:06 pm in Cash Loan Info by State
New York is one of the few US states like Massachusetts, Virginia and Florida which has virtually prohibited payday lending. A regulation was passed in New York 2003 which imposed legal restriction on short term cash lending in New York. This stringent regulation sought to bring an end to unsavory lending practices. However, the rules imposed by the state of New York have not been successful in banning payday loan practices in New York completely. There are many other states in US like New Hampshire and Missouri which do not have stringent laws regarding payday lending industry. Payday lending institutions from such states often operate within the state of New York thus providing New Yorkers the chance to take fast and convenient cash loans during the times of urgent need.
The usury laws of New York has definitely made it difficult for payday lending agencies to operate freely in New York but it has not been able to totally banish them from the state of New York. Most of the restriction imposed on the payday lenders in New York are imposed through the interest rate they can charge on the loan extended. That is why many lenders often show the interest levied on each short term cash loan or payday loan as finance fees and not interest. The stringent laws have many loopholes too which are allowing payday outlets to have a heyday even in the state of New York.
Thus, if you have some urgent bills to pay just days before you get your next salary then you can obviously consider taking a payday loan in New York. Usually most payday loan options available in New York would charge you about $15 per $100. Thus, the average APR of payday loans received in New York usually varies between 350-390%. This rate might seem quite steep to you but when you need money to pay your urgent utility bills like mortgage repayments these loans may seem like a boon. With a payday loan you can save the overdraft fees or your credit card bills or mortgage payment which often involve up to a late fee of 27%.
Apart from that, since competition on the payday lending arena is quite a tough one, you can afford to weigh the advantages and disadvantage of the various lending institutions of New York and zero on the ones which provide you with the most attractive terms and condition. After you have decided on the payday lending agency of your choice, to receive a loan from a payday loan center, all that you need is – your identity proof in the form of a passport or driving license; verifiable employment proof such as an office identity card or a pay stub, and a bank checking account. When you receive the loan you would also need to leave a post-dated check made out to the amount due which includes the original loan amount and interest.
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