Schneiderman Prohibits Illegal Payday Loan Lenders from Collecting

The State Attorney General’s Office announced Monday that an agreement has been reached with five companies that were collecting on payday loans from New Yorkers.

These payday loans have annual interest rates from 100-650 percent or more, which is a violation of New York’s usury and lender laws.

As a result of the illegal loans, the companies involved will pay hundreds of thousands of dollars in restitution and penalties. One of the companies has been prohibited from collecting on $3.2 million in loans.

Attorney General Eric Schneiderman says that debt collectors cannot be allowed to collect on loans that violate New York law.