How Much Interest Can a Bank Charge on a Loan in New York?
Full Question:
Answer:
The federal Truth in Lending Act requires disclosure of the cost of credit. You must receive, in writing, the finance charge (a dollar amount) and the APR, which is the cost of credit on a yearly basis. Payday lenders are subject to this regulation.
If you believe that a lender has violated the Truth in Lending Act, file a complaint with the Federal Trade Commission (FTC). The FTC cannot solve individual problems but will be able to act if it discovers a pattern of violations.
Usury laws limit the interest rate amount a lender can charge. Whether the lender is in violation of usury laws in New York will depend on whether the loan is classified as a personal or cosumer loan and whether an exception applies. Please see the information at the following links:
http://www.ehow.com/list_6746820_new-york-state-usury-laws.html
http://www.banking.state.ny.us/intrate.htm
http://www.banking.state.ny.us/csci.htm
