Payday Loan Laws in New York
Have you ever needed that extra monetary push? Needed to get paid a couple of days, or even a week, before you would normally get your paycheck? It is a story a great many people are familiar with, and payday loans are becoming a more and more popular solution. Before going to get one, though, it is important to know the laws in your state. Payday loan laws in New York are a little different, a little stricter, than what is commonly found in the other states.
It is important to note that payday loans are not available in every state and laws and regulations vary by state. Information for New York Payday Loans is provided for your convenience.
Payday loans in New York are, technically, prohibited. The law says a licensed lender cannot make loans, cash, or advance any money to anyone bringing in a post-dated check unless it is a payroll check. In layman's terms, this simply means the lenders are forbidden to loan anyone money on a check that has been dated in the future unless it is a paycheck from the company they work for. It means that you cannot avail yourself of the most common form of payday loans, and that one needs the approval, and help, of one's boss in order to obtain the payday loans that are available.
In states like Texas, for example, those who find themselves in need of some quick cash can walk into a payday loan office, hand them a post-dated personal check, after having given them appropriate documentation of one's pay scale and schedule, and the office will hand the money over. There is, of course, a great deal of interest applied to loans of this nature, which makes them an expensive proposition.
In New York, the law states that interest rates are agreed to in the contract. Simply put, this means that, as long as the lender is not charging above the twenty-five percent per year interest rate cap, the interest rate on a payday loan is whatever the lender chooses to make it. It is vital to read the fine print, and know what that percentage means in terms of what is actually going to be paid. For example, twenty-five percent interest on a one hundred dollar loan is twenty-five dollars.
Since payroll checks are only available through your job, you must request one from your boss or the payroll accountant. It may seem a little harsh, but it cuts down on the number of people driving themselves into debt simply to satisfy a momentary craving for something they cannot afford.
Payday loans are wonderful things when you need the money. They can be a saving grace, and they can be a force of destruction. Payday loan laws in New York have been designed to mitigate the destructive forces while encouraging the saving graces. Life can be hard, and problematic surprises often pop up that need money to fix. Banks are very particular about who they loan to, but payday lenders generally will lend to anyone with a fairly long-standing job. Payday loans can be a fast and easy way to get what you need.