Familiarize Yourself With The Payday Loans Laws And Regulations In Your State

5 Jul

Familiarize Yourself With The Payday Loans Laws And Regulations In Your State

Below is a state-by-state guide to payday loan laws:

Payday Loans LawsAlabama Payday Loan Regulations

Maximum Loan Amount: $500
Term: 10-31 days
APR (14-Day): 456.25%
Rollovers: 1 permitted
Criminal Action: Mostly prohibited
More information: Alabama Banking Department
Resources: Alabama Payday Loans: Subprime Report

Alaska Payday Loan Regulations

Maximum Loan Amount: $500
Term: Min 14 days
APR (14-Day): 520%
Rollovers: 2 permitted
Criminal Action: Mostly prohibited
More information: Alaska Division of Banking and Securities
Resources: Alaska Payday Loans: Subprime Report

Arizona Payday Loan Regulations

Payday loans prohibited. Small loan rate cap: 36% annually plus 5% fee.
More information: Arizona Department of Financial Institutions
Resources: Arizona Payday Loans: Subprime Report

Arkansas Payday Loan Regulations

Payday Loans Prohibited. Small loan rate cap: 17% annually.
More information: Office of the Attorney General

California Payday Loan Regulations

Maximum Loan Amount: $300
Term: Max 31 days
APR (14-Day): 459%
Rollovers: None permitted
Criminal Action: Prohibited
More information: California Department of Corporations
Resources: California Payday Loans: Subprime Report

Colorado Payday Loan Regulations

Maximum Loan Amount: $500
Term: Min 6 months
APR (14-Day): Colorado APR: 20% for $0-$300 plus 7.5% for $301-$500 plus 45% for each year, plus monthly fee of $7.50 per $100 up to $30, after first month.
Rollovers: 1 permitted at 45% interest
Criminal Action: Mostly prohibited
More information: Colorado Office of the Attorney General

Connecticut Payday Loan Regulations

Payday loans prohibited. Small loan rate cap 30.03% APR.
More information: Connecticut Department of Banking

Delaware Payday Loan Regulations

Maximum Loan Amount: $500
Term: Max 60 days
APR (14-Day): No limit
Rollovers: 4 permitted
Criminal Action: Prohibited
More information: Delaware Office of the State Bank Commissioner
Resources: Delaware Payday Loans: Subprime Report

Florida Payday Loan Regulations

Maximum Loan Amount: $500
Term: 7-31 days
APR (14-Day): 419%
Rollovers: None permitted
Criminal Action: Prohibited
More information: Florida Office of Financial Regulation

Georgia Payday Loan Regulations

Payday loans prohibited. Small loan rate cap 16% per year.
More information: Georgia Consumer Protection Unit
Resources: Georgia Payday Loans: Subprime Report

Hawaii Payday Loan Regulations

Maximum Loan Amount: $600
Term: Max 32 days
APR (14-Day): 459%
Rollovers: None permitted
Criminal Action: Mostly prohibited
More information: Department of Commerce and Consumer Affairs

Idaho Payday Loan Regulations

Maximum Loan Amount: $1,000
Term: Not specified
APR (14-Day): No limit
Rollovers: 3 permitted
Criminal Action: Prohibited
More information: Idaho Department of Finance
Resources: Avoiding Idaho Title & Payday Loans
Resources: Idaho Payday Loans: Subprime Report

Illinois Payday Loan Regulations

Maximum Loan Amount: Lesser of $1,000 or 25% gross monthly income
Term: 13-45 days
APR (14-Day): 403%
Rollovers: None permitted
Criminal Action: Prohibited
More information: Illinois Division of Financial Institution
Resources: Illinois Payday Loans: Subprime Report

Indiana Payday Loan Regulations

Maximum Loan Amount: $550 (can’t exceed 20% of gross monthly income)
Term: Min 14 days
APR (14-Day): 390%
Rollovers: None permitted
Criminal Action: Prohibited
More information: Indiana Department of Financial Institutions
Resources: Indiana Payday Loans: Subprime Report

Iowa Payday Loan Regulations

Maximum Loan Amount: $500
Term: Max 31 days
APR (14-Day): 433%
Rollovers: None permitted
Criminal Action: Not specified
More information: Iowa Division of Banking

Kansas Payday Loan Regulations

Maximum Loan Amount: $500
Term: 7-30 days
APR (14-Day): 390%
Rollovers: Not specified
Criminal Action: Prohibited
More information: Office of the State Bank Commissioner
Resources: Kansas Payday Loans: Subprime Report

Kentucky Payday Loan Regulations

Maximum Loan Amount: $500
Term: 14-60 days
APR (14-Day): 459%
Rollovers: None permitted
Criminal Action: Prohibited
More information: Kentucky Office of Financial Institutions
Resources: Kentucky Payday Loans: Subprime Report

Louisiana Payday Loan Regulations

Maximum Loan Amount: $350
Term: Max 60 days
APR (14-Day): 780%
Rollovers: None permitted
Criminal Action: Prohibited
More information: Louisiana Office of Financial Institutions

Maine Payday Loan Regulations

Payday loans only permitted for supervised lenders. Small loan rate cap 30% per year on amounts up to $2,000.
More information: Maine Office of Consumer Credit Regulation

Massachusetts Payday Loan Regulations

Payday loans prohibited. Small loan rate cap 23% plus $20 administrative fee.
More information: Massachusetts Division of Banks

Michigan Payday Loan Regulations

Maximum Loan Amount: $600
Term: Max 31 days
APR (14-Day): 390%
Rollovers: None permitted
Criminal Action: Prohibited
More information: Michigan Office of Financial Insurance Regulation
Resources: Michigan Payday Loans: Subprime Report

Minnesota Payday Loan Regulations

Maximum Loan Amount: $350
Term: Max 30 days
APR (14-Day): 390%
Rollovers: None permitted
Criminal Action: Not specified
More information: Minnesota Department of Commerce

Mississippi Payday Loan Regulations

Maximum Loan Amount: $500
Term: $0-$250 Max of 30 days; $250-$500 28-30 days
APR (14-Day): 520%
Rollovers: None permitted
Criminal Action: Prohibited
More information: Mississippi Department of Banking & Consumer Finance
Resources: Mississippi Payday Loans: Subprime Report

Missouri Payday Loan Regulations

Maximum Loan Amount: $500
Term: 14-31 days
APR (14-Day): 1950%
Rollovers: 6 permitted
Criminal Action: Mostly prohibited
More information: Missouri Division of Finance
Resources: Missouri Payday Loans: Subprime Report

Montana Payday Loan Regulations

Payday loans restricted. Small loan rate cap 36%.
More information: Division of Banking and Financial Institutions

Nebraska Payday Loan Regulations

Maximum Loan Amount: $500
Term: Max 34 days
APR (14-Day): 459%
Rollovers: None permitted
Criminal Action: Not specified
More information: Nebraska Department of Banking & Finance

Nevada Payday Loan Regulations

Maximum Loan Amount: 25% of expected gross monthly income
Term: Max 35 days; up to 90 with installment payments
APR (14-Day): No limit
Rollovers: Not specified
Criminal Action: Mostly prohibited
More information: Nevada Financial Institutions Division
Resources: Nevada Payday Loans: Subprime Report

New Hampshire Payday Loan Regulations

Maximum Loan Amount: $500
Term: 7-30 days
APR (14-Day): 36%
Rollovers: None permitted
Criminal Action: Prohibited
More information: New Hampshire State Banking Department

New Jersey Payday Loan Regulations

Payday loans prohibited. Small loan rate cap 30%.
More information: New Jersey Department of Banking and Insurance

New Mexico Payday Loan Regulations

Maximum Loan Amount: $2,500
Term: 14-35 days
APR (14-Day): 416%
Rollovers: None permitted
Criminal Action: Prohibited
More information: New Mexico Financial Institutions Division
Resources: New Mexico Payday Loans: Subprime Report

New York Payday Loan Regulations

Payday loans prohibited. Small loan rate cap 25% per year.
More information: New York State Department of Financial Services

North Carolina Payday Loan Regulations

Payday loans prohibited. Small loan rate cap 36%.
More information: North Carolina Attorney General

North Dakota Payday Loan Regulations

Maximum Loan Amount: $500
Term: Max 60 days
APR (14-Day): 520%
Rollovers: 1 permitted
Criminal Action: Mostly prohibited
More information: North Dakota Department of Financial Institutions

Ohio Payday Loan Regulations

Maximum Loan Amount: $500
Term: Min 31 days
APR (14-Day): 28%
Rollovers: None permitted
Criminal Action: Prohibited
More information: Ohio Division of Financial Institutions
Resources: Ohio Payday Loans: Subprime Report

Oklahoma Payday Loan Regulations

Maximum Loan Amount: $500
Term: 12-45 days
APR (14-Day): 390%
Rollovers: None permitted
Criminal Action: Prohibited
More information: Oklahoma Department of Consumer Credit
Resources: Oklahoma Payday Loans: Subprime Report

Oregon Payday Loan Regulations

Maximum Loan Amount: Not specified
Term: Min 31 days
APR (14-Day): 156%
Rollovers: 2 permitted
Criminal Action: Prohibited; Civil penalties allowed
More information: Oregon Department of Consumer & Business Services

Pennsylvania Payday Loan Regulations

Payday loans prohibited. Small loan rate cap 11% per year.
More information: Pennsylvania Department of Banking

Rhode Island Payday Loan Regulations

Maximum Loan Amount: $500
Term: Min 13 days
APR (14-Day): 260%
Rollovers: 1 permitted
Criminal Action: Not specified
More information: Rhode Island Department of Business Regulation

South Carolina Payday Loan Regulations

Maximum Loan Amount: $550
Term: Max 31 days
APR (14-Day): 390%
Rollovers: None permitted
Criminal Action: Prohibited
More information: South Carolina State Board of Financial Institutions
Resources: South Carolina Payday Loans: Subprime Report

South Dakota Payday Loan Regulations

Maximum Loan Amount: $500
Term: Not specified
APR (14-Day): No limit
Rollovers: 4 permitted
Criminal Action: Not specified
More information: South Dakota Division of Banking

Tennessee Payday Loan Regulations

Maximum Loan Amount: $500
Term: Max 31 days
APR (14-Day): 459%
Rollovers: None permitted
Criminal Action: Prohibited
More information: Tennessee Department of Financial Institutions
Resources: Tennessee Payday Loans: Subprime Report

Texas Payday Loan Regulations

Maximum Loan Amount: Not specified
Term: 7-31 days
APR (14-Day): 309.47%
Rollovers: None permitted
Criminal Action: Not specified
More information: Texas Office of Consumer Credit Commissioner
Resources: Texas Payday Loans: Subprime Report

Utah Payday Loan Regulations

Maximum Loan Amount: No limit
Term: No longer than 10 weeks
APR (14-Day): No limit
Rollovers: Not specified
Criminal Action: Not specified
More information: Utah Department of Financial Institutions
Resources: Utah Payday Loans: Subprime Report

Vermont Payday Loan Regulations

Payday loans prohibited. Small loan rate cap 18% per year.
More information: Vermont Banking Division

Virginia Payday Loan Regulations

Maximum Loan Amount: $500
Term: Min 2 pay periods
APR (14-Day): 687.76%
Rollovers: None permitted
Criminal Action: Prohibited
More information: Virginia Bureau of Financial Institutions
Resources: Virginia Payday Loans: Subprime Report

Washington Payday Loan Regulations

Maximum Loan Amount: Lesser of $700 or 30% of gross monthly income
Term: Max 45 days
APR (14-Day): 390%
Rollovers: None permitted
Criminal Action: Prohibited
More information: Washington Department of Financial Institutions

West Virginia Payday Loan Regulations

Payday loans prohibited. Small loan rate cap 31% per year on loans of $2,000 or less.
More information: Office of West Virginia Attorney General

Wisconsin Payday Loan Regulations

Maximum Loan Amount: Lesser of $1,500 or 35% gross monthly income
Term: Max 90 days
APR (14-Day): No limit
Rollovers: 1 permitted
Criminal Action: Prohibited
More information: Wisconsin Department of Financial Institutions
Resources: Wisconsin Payday Loans: Subprime Report

Wyoming Payday Loan Regulations

Maximum Loan Amount: Not specified
Term: Max 30 days
APR (14-Day): 780%
Rollovers: None permitted
Criminal Action: Mostly prohibited
More information: Wyoming Division of Banking

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*All state payday loan legal information courtesy of Consumer Federation of America. “Payday Loan Consumer Information” CFA. Accessed September 15, 2016. http://www.paydayloaninfo.org/state-information

References:

  1. Standaert, Diane. “Payday Loan Quick Facts: Debt Trap by Design.” Center for Responsible Lending. July, 2014. Accessed September 22, 2016. http://www.responsiblelending.org/payday-lending/payday_loans_quickfacts.pdf
  2. “Annual Percentage Rate” RedFin. Accessed September 22, 2016. https://www.redfin.com/blog/2017/03/interest-rate-and-apr-are-not-the-same-thing-heres-the-difference.html
  3. “How Payday Loans Work.” CFA Payday Loan Consumer Information. Accessed September 22, 2016. http://www.paydayloaninfo.org/facts

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