Full question:
My name is Heidi my sister and i we been having a secure loan in this Banl in NY for over 10 years and we just feel like they interest rate must be wrong they are 26% to 46% a year.Can some one tell us if this is normal or not.Is the secure loan with The provident loan society in NY.Sincerely.
- Category: Debts and Credit
- Subcategory: Lending
- Date:
- State: New York
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
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.
