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KEEP USURIOUS LENDING OUT OF NEW YORK STATE!
A growing number of check cashers, banks and other entities are seeking to make usurious small-dollar loans in New York State. These loans are currently banned in New York, thanks to our state's criminal usury cap of 25%. Not surprisingly, check cashers and payday lenders want to get around our strong usury laws and make these predatory loans to already struggling New Yorkers.
NYS BILL WOULD ALLOW CHECK CASHERS TO MAKE USURIOUS LOANS
The "Short-Term Financial Services Loan Act" (S.3999-A / A.1113-A), designed by the check casher industry, would specifically allow check cashers to evade New York State's 25% interest rate cap. The bill would open the door to payday lenders in New York and wreak havoc in already economically distressed communities throughout the state.
New Yorkers for Responsible Lending, a coalition of 160 organizations throughout the state, is calling on the NYS legislature to withdraw this dangerous bill. Instead of rolling back critically needed consumer protections, the legislature should affirmatively support community development financial institutions and other lenders that meet community credit needs in a responsible manner.
Opposition to the NYS Check Casher Bill S.3999-A / A.1113-A (previously S.3841 / A.7047):
Promoting Responsible Lending:
- New York Daily News, "Check cashing stores push Albany lawmakers to allow 200% APR loans"
- New York Times Editorial, "Gouging the Poor in New York"
- New York Times Editorial, "Hurting Poor Borrowers"
- Buffalo News Editorial, "Bad deal for borrowers"
- Buffalo News, "‘Payday loans’ bill draws heated debate"
- American Banker, "Consumer Groups Call N.Y. Plan an Invitation to Usury"
- City Limits, "Albany Bill Would Let Check-Cashers Provide Loans"
- Huffington Post, "Albany Considering Handing Check Cashers Blank Check for Predatory Lending"
- Huffington Post, "Legalized Loan-Sharking: Is It Coming to New York?"
- Prospect Heights Patch, "Hakeem Jeffries Signs Onto Bill Clearing Way For 'Payday' Loans"
- Times Union, "Farley promises to amend check casher loans"
- Coalition Press Release: NYS Senate Advances Bill that Would Open Door to Predatory Lending (May 18, 2011)