THE BRONX - Gov. Andrew Cuomo is cracking down on online companies offering illegal payday loans.
Thousands of borrowers, including many in the Bronx, have fallen into the quick-money loan trap that comes back to bite with huge interests rates of up to 600 percent.
Local financial experts are echoing the governor's warning to consumers. He says that no matter how desperate you may be for money right now, online lending is never a good idea.
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“We have laws in this country that ban abusive and deceptive predatory practices. Pay day lending is really at the top of the list," said Sarah Ludwig, of the New Economy Project.
The companies involved in the illegal online lending have been warned by Cuomo to quit immediately or face serious consequences.