Beware of Payday Loans

A payday loan is a relatively small, high-cost loan, typically due in two weeks and made with a borrower’s post-dated check or access to the borrower’s bank account as collateral. Annual percentage rates on payday loans are extremely high, typically around 400% or higher. Payday loans are illegal in New York State. It is a violation of New York State law to make payday loans in-person, by telephone, or over the Internet. It is also illegal for a debt collector to collect, or attempt to collect, on a payday loan in New York State.

LSLI’s Consumer Debt Legal Assistance Project provides legal assistance to persons who are experiencing consumer debt problems, especially in matters of medical and credit card debt. Services may include litigation defense and representation, phone advice, and/or referral for further services, including bankruptcy, where appropriate. To be screened for services, Nassau residents can call 516-292-8100, and Suffolk County residents can call 631-232-2400.