The New York City Department of Consumer Affairs announced this week that it has reached a settlement with collection company National Credit Adjusters (NCA) over collections on illegal payday loans. The Kansas-based company will pay approximately $1 million in restitution and the Department estimates over 4,600 New Yorkers will be eligible for compensation. NCA will also ask credit reporting agencies to delete negative information and pay hundreds of thousands of dollars in fines.
New York is one of 15 states that prohibit high-interest short-term loans, according to the Department.
Read the Department's press release here.