Payday Advance New York
Payday advance loans are used by millions of people across the country to obtain quick access to cash when it's needed to overcome emergencies. Payday advances meet the needs of many people because they provide cash advances rapidly and are short-term loans that are paid off quickly, usually within 31 days or upon your next payday.
However, payday loan lenders rely on high interest rates and associated service fees to make profits. Due to this extraordinarily high interest (which usually equates to more than 300% APR), New York payday loans are strictly forbidden.
State Laws Concerning New York Payday Loans
New York State has some of the toughest restrictions on payday loans in the country. Only banks and licensed small loan companies are authorized to administer small, short-term loans in New York. Also, there is a 25% cap set on interest that can be charged on any type of loan. These two restrictions prevent New York payday loan lenders from operating within the state.
Even online payday lenders, which can normally operate in other states with payday loan restrictions as long as they adhere to state laws and guidelines, are prohibited. New York does not permit payday advances from Internet companies to state residents unless they are banks or licensed by the state, which the majority of Internet companies are not. The state of New York vigorously prosecutes those companies that seek to provide New York payday loans illegally.
Because of the low rate of interest allowed under New York payday advance laws, most companies cannot or will not operate. Many other states that restrict interest on short-term cash loans have in place a 36% cap. Some online payday loan lenders will offer advances under those guidelines, although it is too low a rate for them to do business. However, the cap set by New York state law is at 25%, which hinder even the most willing companies from offering payday cash advances, even if it were legal for them to do so.
Alternative Sources for Extra Cash Other Than New York Payday Loans
It is a reality of life that situations and emergencies arise, which requires fast access to cash in order to overcome them. The car you rely on to get to work, take the kids to school, and run necessary errands breaks down, home systems malfunction, appliances fail, illnesses arise that require treatment and medications, and various other problems can occur at unexpected times leaving you financially unprepared.
Many people turn to the rapid cash that short-term payday loans provide. However, if you are a resident of New York then you will need to turn to other sources for fast, extra cash other than prohibited a payday advance New York loan. Here are some suggestions on where you can turn for alternative sources of money.
Sometimes, due dates on bills can sneak up and surprise you, leaving you without the funds to pay them on time. If you miss a payment, late fees and other charges are piled on, plus damage is done to your credit rating. To avoid such a problem, you can call your creditor(s) and request that the due dates on any upcoming bills be extended so you have more time to pay them without defaulting.
If you require extra cash, you can seek to obtain it in several ways through your employer. You can request to work any overtime that might be available, ask for a cash advancement that is deducted from subsequent paychecks, or make dependent adjustments to your W-2.
Other ideas for obtaining extra cash for emergencies are to seek out local, state, or federal government assistance programs, apply for a loan or debt consolidation at a bank or credit union, sell or pawn items, work an extra job, get a cash advance from a credit card, seek a title loan, or borrow money from friends or family.
Contact the following for more financial information:
New York State Banking Department
1 State Street
New York, NY 10004
Phone: 212-480-6400 or 800-342-3736