New Yorkers Say No to Predatory Lending!

I write to you as a New Yorker who is deeply concerned about the systematic violation of our state usury law by predatory lenders, especially payday loan apps. Though it is a felony to charge more than 25% interest on a loan in New York State, the so-called “Earned Wage Access” (EWA) industry is evading our laws to push illegal, high-cost loans on workers, trap borrowers in debt, and siphon wealth from NY’s Black, brown, and immigrant communities.

Backed by Silicon Valley venture capitalists and Wall Street investors, EWA companies market app-based “no interest” cash advances, but extract profits from workers by driving repeat use while charging deceptive fees. One common loan made to New Yorkers carries an effective interest rate above 750% APR, according to the NYS Attorney General. The industry has extracted well over $500 million from New Yorkers’ paychecks since 2019.

Courts across the country have affirmed that EWA products are loans and must be regulated as such. I urge you to protect New Yorkers by upholding our usury law and stopping predators from draining wealth from our communities:

- Support the Stop Taking Our Pay Act or “STOP” (S8939-Brouk/A9644-Raga), which would stop the EWA industry from pushing predatory loans onto New Yorkers by clarifying that EWA products are loans regulated by New York’s usury law and that all wealth extracted through fees, tips and other means must be included in calculation of interest.

- Support the End Loan Sharking Act or “ELSA” (S1726-Brouk/A4918-Raga). ELSA would make clear that a variety of predatory products – including EWA, litigation financing, merchant cash advances, and rent-to-own arrangements — are loans subject to our usury law, which caps interest at 25%. 

- Oppose S3332-A/A258-A, which would gut New York’s usury law, effectively legalizing high-cost payday lending for the first time in New York State’s history.

As the Trump administration dismantles federal consumer protections, predatory lenders are more emboldened than ever. State lawmakers must step up and defend New Yorkers from unleashed predation. A recent poll from Community Service shows that 88% of New Yorkers—across geography, race, income level, gender and party line—support cracking down on predatory lending through the passage of bills like ELSA and STOP. 

Will you stand with your constituents and support ELSA and STOP and oppose S3332-A/A258-A? 

Thank you for your attention to this urgent matter. I look forward to your response.