LexisNexis® Legal Newsroom
Maximum Interest on Private Loans in New York

Much has been written about how difficult it is now to obtain financing for small businesses. Banks charge high interest rates, and it is tough to qualify even for a bank loan. Angel or VC funding is even harder to come by. So, to secure funding, business owners turn to their friends and family members...

Cuomo Cracks Down on Payday Lenders

New York Gov. Andrew Cuomo (D) and his administration's top financial regulator issued letters to 35 online payday lenders warning them to stop issuing loans that violate state or local usury laws. The order came after a state Department of Financial Services investigation revealed some of the lenders...

For Purposes of New York Usury Laws, What Fees or Charges Are Included in Loan Interest Rates?

In New York State, charging interest of more than 16% per year is civil usury . Further, in New York, charging, taking, or receiving interest of 25% or more is criminal usury. Lenders and borrowers frequently ask me what fees or charges count toward a loan’s interest rate for purposes of New York’s...

CFPB Takes First Action Against Online Loan Servicer

by Lauren E. Quigley On December 16, 2013, the CFPB initiated its first action against an online loan servicer. CashCall, Inc. allegedly engaged in unfair, deceptive, and abusive practices. The CFPB investigation uncovered evidence that the company had violated either licensing requirements or interest...

Western Sky Financial and CashCall Settle with New York over Internet Loans

The New York Attorney General’s office has reached a settlement agreement with Western Sky Financial, LLC, CashCall, Inc., WS Funding, LLC, and their owners, Martin Webb and J. Paul Reddam, for allegedly violating New York’s usury and licensed lender laws in connection with personal loans...