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The New York Attorney General recently announced a settlement with Forster & Garbus, a large debt collection law firm that had filed collection actions against consumers arising out of payday loans. Specifically, Attorney General Eric Schneiderman alleged that the firm had collected consumer debts on behalf of NCEP, LLC (NCEP). The Attorney General claimed that in five cases the firm attempted to collect on payday loans, which are illegal under New York law. (New York General Obligations Law Section 5-501 and Banking Law Section14-A provide that loans of $250,000 or less with an interest rate of at least 16 percent are usurious. Loans with rates exceeding 25 percent are criminally usurious.) http://ikontrast.ru

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