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Payday Lending

Payday loans (also called paycheck advances or a payday advances) are short-term, high-cost loans, usually up to $500.  The loans are made to cash-strapped borrowers with the anticipation that they will be paid back on the borrower’s payday.  Typical fees for borrowing $100 range from $15 - $35.  (A $15 fee on a $100 two-week loan results in an annual percentage rate of 390%.)  When borrowers don’t have the cash come payday, the loan gets flipped into a new loan, piling on more fees into a spiral of debt for the borrower.

New York State has a 25% interest rate cap (usury law) on small loans so payday lending is illegal in New York.  For this reason, New York does not have the store fronts selling payday loans that exist in other states.  Lenders are increasingly making illegal payday loans to New Yorkers, however, through the internet and toll free telephone numbers.

 



ARTICLES

Information Regarding Everest Institute College
f you are a current Everest Institute student and need further information regarding student loan relief options. Read More

Top Ten Ways The CFPB Can Help You With Financial Questions
The U.S. PIRG Education Fund has put together this great resource of how the CFPB can help you. It includes information on how to make complaints to the CFPB. Read More

CFPB Takes Action Against Payday Lender For Robo-Signing
Cash America to Refund up to $14 Million for Robo-Signing and Illegally Overcharging Service-members. Read More


Payday Lending: Articles



IN THE NEWS

The Future of Wall Street Regulation Is in Andrew Cuomo's Hands
New York Governor Andrew Cuomo must soon appoint a replacement superintendent for the state Department of Financial Services (DFS), an obscure regulatory position that the current head, Benjamin Lawsky, elevated into a major national player over the past four years. Read More

How Credit-Card Debt Can Help the Poor
Last October, Jeffrey Shavers, a hotel maintenance worker in Chicago, took out an extremely unusual $300 loan. Read More


Payday Lending: In the News



POLICY ADVOCACY

Joint Comments on Sterling Bancorp's Acquisition of Astoria Financial
We joined with other advocacy organizations representing Long Island to submit comments on Sterling Bancorp’s Proposed Acquisition of Astoria Financial Corporation. Read More

Empire Justice Center Comments to CFPB on High Cost Installment Loans
If there is an unwillingness to ban high-cost payday lending outright on the federal level, then we call on the CFPB to act with great care to ensure that the rules only have the effect of regulating payday lending where it is legal, and not the unintended effect of opening the door to payday ending in states where it is illegal. Read More


Payday Lending: Policy Advocacy




NEWSLETTERS

Policy Matters - April 2013
Happy Spring! Welcome to our second April issue of Policy Matters – the extended “non-budget edition” where we will try to catch you up on the many issues we have been working on this month. Read More

Policy Matters: September 2012
In between juggling children’s summer camps and activities, taking vacations and attending family reunions, Empire Justice Center staff members did a lot of policy work this past summer. We are happy to share what we did in this issue of Policy Matters. Read More





RESOURCES

Top Ten Ways The CFPB Can Help You With Financial Questions
The U.S. PIRG Education Fund has put together this great resource of how the CFPB can help you. It includes information on how to make complaints to the CFPB. Read More

Consumers Can Register Complaints with the CFPB
Any consumer with a complaint involving a mortgage, a student loan, a credit card, a bank account, a car loan, a money transfer or a credit report, can register a complaint with the Consumer Financial Protection Bureau. Debt collection issues and payday loans will be added soon. Read More

Information on the Hazards of Payday Lending
For information about the hazards of payday lending. Read More