Payday Loans in New York

Amount and term limits

There is no lawful New York payday-loan amount range to encode. New York DFS states that payday loans are illegal in the state whether offered in person, by telephone, or over the Internet.

A payday-loan term is not presented as a permitted New York product because the underlying payday transaction is prohibited.

Interest, fees and repayment

The relevant New York framework is a prohibition on payday lending combined with state usury limits, not a permitted payday fee formula.

New York does not create a special payday-loan fee schedule. Banking Law §14-a sets a 16% general annual maximum rate referenced by General Obligations Law §5-501, while Penal Law §190.40 defines criminal usury above 25% when not otherwise authorized by law.

A New York payday repayment schedule should not be marketed as a lawful state product. DFS also states that it is illegal for a debt collector to collect, or attempt to collect, on a payday loan in New York State.

Rollovers, refinancing and early payment

Rollover allowed?

Not reduced to a yes/no rule
No rollover rule is encoded because payday lending itself is prohibited in New York.

Prepayment penalty allowed?

Not reduced to a yes/no rule
No payday prepayment rule is encoded because payday lending itself is prohibited in New York.

New York borrower protections

• New York DFS states that payday loans are illegal in person, by telephone, and over the Internet.
• DFS also states that a debt collector may not collect, or attempt to collect, on a payday loan in New York State.
• New York Banking Law §14-a sets the general civil usury ceiling at 16% per year for loans governed by that rule.
• Penal Law §190.40 makes knowingly charging more than 25% per year criminal usury when the charge is not otherwise authorized or permitted by law.

How to verify a lender in New York

Regulator: New York State Department of Financial Services (DFS).

There is no New York payday-lender license that makes a payday loan lawful. Use DFS to verify any lender or financial institution claiming to serve New York residents.

Verify a lender license

Official sources

1. New York DFS — Predatory Loans and Loan Scams: Payday Loans · primary
2. New York Banking Law §14-a — Maximum rate of interest · primary
3. New York General Obligations Law §5-501 — Usury forbidden · primary
4. New York Penal Law §190.40 — Criminal usury in the second degree · primary
5. New York DFS — Who We Supervise · primary

Last regulatory verification: 2026-09-06. Laws can change; verify current terms and lender status before borrowing. Read our research methodology.