Of the 18 states that ban or strictly regulate payday loans, New York’s is the toughest. But that hasn’t stopped online lenders from finding customers in the Empire State and charging sky-high rates for small loans.
For borrowers with poor credit, there are alternatives to payday loans, but they come with strings attached.
The online payday loan surge is driven in part by online lead generators who sweep cyberspace for prospective borrowers and, for a fee, steer them to Internet lenders.