Are Payday Loans illegal in NY?

Payday loans are illegal in NY. It is illegal for the pdl company to lend money to the borrowers and charge interests. Report them to your state AG and the Dept of Finance.

Don't touch your 401K plan in paying off the loans. It will not be right to take out money that you have saved for the future. You are liable to pay only the principal amount and be done with them. Just find out how much you have paid so far.

I am going to go through my bank statements and try to calculate how much I have paid these clowns to date. I'm kind of afraid to know... :oops:

I plan on contacted my state's AG as soon as I figure this out. I wonder if I could get a refund of any amount I overpaid?

What companies do you have loans with, for how much originally and how much have you paid each one of them. No matter who they are you will find someone here to tell you what to expect from them.

The NY attorney general certainly thinks their illegal. But we'll have to wait until the court in Albany decides the AG's case against County Bank and two internet lenders to find out if he's right. I think it's scheduled for trial this fall.

FreakyFriday - I'm also from NY and have loans with all those mentioned and then some. I had 15 PDL's all internet and all but 3 were overpaid. I just made arrangements to start paying on two of the three. I did file a complaint last week with the AG - do you think I'll hear something or will they wait until the court case is over? I was hoping he would at least be able to get PIF on all the overpaid ones. I have reduced them down to 10 by getting 5 PIF (4 for sure and 1 pending) and I'm still going to work it - I was just hoping I would hear from them soon.

Explain New York illegal pdl's to me. If they are illegal, doesn't that mean they're illegal - period? If they are not licensed to lend to New York residents, then they are illegal. Correct? Excuse me for being confused. I understand it's not always "cut and dry", but if internet lending is illegal, I don't understand why there is a court date?

I though I read somewhere on these forums that they aren't in fact illegal here in NY, and that the interest rate depends on what is agreed to in the contract. If that's the case, then I'm very confused... :shock:

Can someone please clarify this? I thought I read that they ARE illegal in New York. Any expert on this out there???

I too have had this same problem. I had a few pdls with these companies
cmg group llc 200
b and l marketing 200
ameriloan 200

Then all of a sudden these companies appear
zz solutions 29.98
pack management 350
united cash loans 200

I never heard of pack management but when I called the lady on the phone said it is b and l marketing. They threatened me by saying they will garnish my check with court papers to my emlployer! I just hung up and they had nerve to call me back! I made a complaint with the NYPD, FTC, and AGs office.

from what i have seen, these loans are not legal in ny and i have seen people have great success settling these loans as the result of that.

i have seven payday loans right now and im in living hell i live in ny and started with a debt consultive and i have no idea if that was the right thing to do........all through the internet, i have cmg, pack, united, one click, laska, haske, could u please give me the websites to make a complaint....i even think my debt consultant is a scammer also anyone hear of pbl assistance and global solutions...thanks so much

PDL's are not legal in NYC. All you need to repay is the actual amount borrowed. Any fees or interest go towards the balance.

I meant illegal in NYS. Sorry

I contacted the NYS Banking Department by email today. This is what I sent them:

"Hello,
I am trying to find out information on payday loans, and whether or not
they are legal in NYS. I am a bit confused since the NYS Banking
Department Website states that these loans are illegal in NYS, but then
goes on to tell you how to shop around for this type of loan. Here is
the link I am reading: (I inserted their link here)
Are you able to clarify?
Thanks and Regards,"


Here is their response to me:

"We advise that Payday Loans are illegal if they violate the Usury Ceiling of 25% p.a. and are physically located in New York. Most Payday Loan companies operate over the internet and have physical locations in States where there is no Usury Ceiling. When you borrow from one of these internet Payday lenders you are deemed to be taking a loan in their State of domicile. To help extricate you from your situation we recommend that you contact the NYS Lawyers Referral Service at 1-800-342-3661.

NYSBD"

Pay day loans are illegal in NYS. All you are morally obligated to repay is the principle amount borrowed. Don't know who sent you the response, but YOUR state laws prevail.

I believe they payday loan companies can't lend in NY.
[samebox:5fc923b52a="paulmergel"]right,but you can have a pdl site as your signature.talk about BOLD!!!!!!!!!![/samebox:5fc923b52a]

I used a letter from this site to send to my payday lenders so they would stop calling me at work and not be able to garnish my wages, it also stated that they were illegal in NY. I contacted the BBB and 2 out of 5 responded back saying that my letter I sent them was a "generated letter going around the internet that was misleading and untrue". Can they report you to the credit bureaus?

They say that to everyone, and yes, payday loans are prohibited in N.Y. If they do report it to a CRA, just send a copy of your payday loan laws to the CRA and tell them you want it removed asap!

In reply to the above out of curiosity I just called the NYS Banking Department to find out more and I recieved the same information. An out of state internet payday loan is "totally enforceable" based on their states APR rates depending where they are located. They operrate in states where there is no usary cap at all, up to 4000%. These company's are illegal to "set up shop" in New York, but can only charge a usuary cap of 25% in NYS. What the heck does that mean??? I don't understand it??? I'm in the same situation as you. I'll see you at the soup kitchen....NYS has no consumer protection from outside preditory lenders what so ever... I was told by them to retain an attorney....Like that's going to help!!!

Correction for the above it was in respect to a previous post of someone who called the New York state banking department also. Honestly we are obligated to their out of state APR's... To set up shop in new york is illeagal. Over the internet from another state they got us..

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i believe someone contacted the attorney general's office for NY and was told they were prohibited completely.

I hope you're right on this. I'm wondering about Ameriloan and One Click Cash. I defaulted (closed my account back in July.) Tried to contact them several times but have heard nothing, no collection calls or anything. My paronia gets the best of me. The NYSBD's response bothers me. Thanks for you input.

call your attorney general's office for a peace of mind. their advice is more accurate and correct than the NYSBD. let us know what they say :)
these payday lenders will say anything to scare you. even if someone did have a legal loan, they will not be put in jail, etc. for an unpaid debt! but they are not legal in your state, make arrangements to pay the principal and you are done.

Pay Day loans are Prohibited in NY period. You have the right tools to get your loan paid in full or cancelled according to NY state law. Ensure you have your loan documents and a copy of the payday loan laws for NY when you call the NY AG office.

I advise you ignore the calls and threaths from the payday loan companies untill you get an definate answer from your state's AG offcie.

Just to play Devils Advocate...

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because a financial institution doesn't deremine legality.they license.according to the NY AG.no license,not legal.especially internet.the banking sector has no right to say that an internet pdl is allowed around the licensing issue.spoke with someone at the NY AG'S office for that bit of info.

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so PDL owner, I am also in NY. If I follow the advice given , I can get into trouble???Please tell me what I can do

I asked a question from PDL owner and I guess i did it wrong because it did not post.PDL owner , what should I do about my loans > I am in NYS and if the info here is wrong , I do not want to get into a bigger mess> Please help, as I am now real scared. I started to listen to some advice and now if it is not right, i am screwed.PDL Owner , please tell me what to do.

the bank department isn't a legal entity.they control the licensing.they have no authority to tell someone that an unlicensed illegal pdl is not subject to the law.btw yes AG'S have gone after branches like the bank department before.the bank department is supposed to inform someone if a place is licensed or not.that is it.i stated on another thread.get a name if you speak with the bank dept.pdl's are prohibited.especially internet pdl's.

Where is PDLOwner (LOL0
I really need your help

I meant (LOL)

i agree with paul. i understand if you are skeptical about information found on foroums but many many people stuck to our advice here concerning NY laws and have settled for the amount borrowed.

while owner has a point.the bank dept.is not a legislative part of the gov't.they don't make or pass laws.therefore they are not supposed to interpret them either.the law is cut and dried in NY.pdl's are prohibited.

The banking department in each state is in place to approve/deny licenses, regulate and enforce the the policies that they are provide for the banking/financial industry. If they choose to enforce, great. If they choose to look past, that is their option. Based on the conversations that a few here may or may not have bad with the NYSDB, it sounds as though they are choosing to look past IPDL's, more than likely this is due to the time and money needed to complete this task. The AG can tell you that IPDL's are not legal, but again until they do something, their word means little.

The bottom line for the poster asking for advice, it is your call. You can follow what the AG is saying and hopefully get them to go away or you can pay them to get them to go away. I would go with the first option as opposed to spending more money. In the end, until someone at the state does something, they will be no more help than a breeze to keep you cool.

Remember that laws and regulations are only as good as the people that enforce them. The odds of NY spending a dime on this when they already have the laws/regs on the books is zero.

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Does anyone have any more input on this? I still haven't heard anything from any of these payday loan companys (closed account back in 7/09) and I'm wondering what they are up to??? No collection calls or nothing. Is there any help in NYS or should I just sit tight and wait to see what happens? Thanks

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Than I all along NYS laws don't protect us?

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The laws DO protect us but if the PDL is actually located in another country, I would imagine there's not a whole lot enforcement agencies in NY or any other U.S. State can do as far as going after them (unfortunately!). Shazzers, you're right, when you talk to different people, you DO get different answers; that's why I try to get all the information I can via e-mail or mail; at least that way if person "A" tells me one thing and person "B" says something else, I have something in writing. (hey, we do what we can! :) )

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i can see and understand all sides to this actually but i would still stand by the attorney general's office's advice. but that is just me.
either way i have found that once the principal is paid, *most* illegal companies are more than happy with that and will eventually leave you alone.

PDL Owner
Can you please come back and clarify all of this. I really need your help

i know i am not PDL Owner but I can say that I never once heard of an illegal lender stepping foot in a court room to do anything to you.

well i for one will never take the DFI'S take over an AG.the DFI doesn't make the laws.nor are they supposed to intrepret the law.i will not tell someone that a state that prohibits pdl's will allow internets to loan.the AG says pdl's are illegal,and i for one will not advise anyone here otherwise.

PDL Owner, I do have some questions for you.

I agree, I'd stick with what the AG says, or if you have a financial regulatory agency in your state that covers ALL financial regs, not just those dealing with banks. The AG Office IS the "lawman" of each State so presumably they know what's right (of course your illegal PDLs' will tell you the AGs' don't know what they're talking about...)