New York Payday Loan laws: Update 2017
Licensed Lender No person or entity shall engage in the business of making loans in the principal amount of $25,000 or less to an individual for personal, family, household, or for investment purposes and in a principal amount of $50,000 or less for business and commercial loans, and charge, contract for, or receive a greater rate of interest than the lender would be permitted by law (currently 16%) to charge if not a licensee without a license from the Superintendent. For licensing requirements see Article 9 of the Banking Law, sections 340 to 361, Superintendent's Regulations Parts 401, 407 and 300 and Penal Law Section 190.42.
New York Payday loan laws. New York Payday loan legislation.
New York General Obligations Law Section 5-501 and New York Banking Law Section 14-a prohibit consumer loans under $250,000 made by nonbank lenders with an interest rate exceeding sixteen percent per annum. And New York Banking Law Section 340 also prohibits unlicensed, nonbank lenders from soliciting and making consumer loans of less than $25,000 with interest rates exceeding sixteen percent per annum.
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