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In August 2013, officials at the New York Department of Financial Services (DFS) announced the Department had recently sent warning letters to 35 payday loan companies, including Advance Me Today, directing them to cease and desist offering and making usurious payday loans in New York via the Internet or by other means. DFS’s ongoing investigation has shown that these companies have charged New York consumers for payday loans with interest rates many times the legal limit. Persons and entities collecting on debts in New York should not attempt to collect on payday loan debts from these 35 companies unless they confirm that the original transactions creating the debts were not usurious.

Debt collectors are reminded that loans offered in New York by non-bank lenders, with an interest rate above the statutory maximums, including payday loans, are void and unenforceable. Attempts to collect on debts that are void or unenforceable violate the Fair Debt Collection Practices Act. Payday loans are short-term loans, typically an advance on a future paycheck or other income source. In New York, loans or forbearances under $250,000, made by non-bank lenders, with an interest rate exceeding 16 percent per annum, constitute civil usury and are illegal. Further, loans made in New York with an interst rate exceeding 25 percent per annum constitute criminal usury. DFS pledged that the Department will aggressively enforce the law against any person or entity attempting to collect debts on illegal payday loans made to New York consumers.