I was puzzled when I recently watched an ad for Pay-Day-Loan (or the like) that in the disclaimer specifically mentioned that they didn't provide their service in New York due to legal limits on interest rates. So I looked it up and found this page which suggest that while New York has a limit on interest charged of 16% then many other (majority) has a similar limit with many being 8-10%.

Store cards and credit cards are often linked to an interest rate of 20% of more -- while the page suggest that for California where I live the limit is 10% -- so are they breaking the law or is a credit card simply not a "loan" and qualify under these rules?

Similar, the New York's limit of 16% does not look like the most stringent -- for example Texas is 10% and West Virginia is 8% -- so is there anything which set New York apart compared to other states when it comes to interest rates?

  • Delaware has "5% over FRDR" limit, but your suggestion could explain the New York carve-out if New York were asserting that it is important where the customer is located and not the company. – Soren Jan 25 '16 at 15:54

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