Governor Andrew M. Cuomo announced that the New York State Department of Financial Services has sent letters to all debt collectors in New York stating that it is illegal to attempt to collect a debt on a payday loan since such loans are illegal in New York today. Pay day loans are short-term loans, typically an advance for a paycheck, with incredibly high interest levels that violate brand brand New York’s criminal usury legislation, which limits interest to 25 %. Thinking about the charges on a yearly foundation, the attention price is as high as 400 per cent.
“Today’s notification will remind loan companies into the suggest that such techniques are unlawful in ny,” Governor Cuomo said. Continue reading “Governor Cuomo Announces Department of Financial Services Notifies loan companies to not look for Collection on Illegal payday advances”