Payday Loan Laws State by State

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Payday Loans Neon Sign | Payday Loan Laws

Payday Loan Laws, Limits & Repayment Plans By State

Below find payday loan laws for all 50 US states and the District of Columbia. Use this information as a starting point for your research on payday loans, which are called “deferred deposit loans” by some state legislatures. See the Bills.com article How to Handle Payday Loans to learn more about repaying a payday loan.

If your debt load causes you distress, go to the Bills.com Debt Savings Center to get a no-cost quote from a pre-screened debt resolution service provider.

An important point: some online payday lenders are based on tribal land, which is not subject to state laws restricting the interest rates or fees charged by these lenders. Some states, notably Arkansas and Kentucky, take the position that online payday loans are not legal for residents in those states. Today, online payday loan law is unsettled.

State Max Loan Term Interest
(simple term)
Repay­ment Plan Law Store­fronts Online Regulated* Law Regulator
Payday Loan Laws State by State. Source: Bills.com
Alabama $500 31 days 17.50%; +3% after default Repayment plan required. Yes, AL license Yes Alabama Sec. 5-18A-1 Banking Dept
File a complaint
Alaska $500 >14 days 17.5% + $5 fee Repayment plan required. Yes, AK license Yes Alaska Sec. 06.50.010 Division of Banking & Securities
File a complaint
Arizona Zero       Prohibited Prohibited Arizona Title 6 Chapter 12.1 Dept of Financial Institutions
File a complaint
Arkansas Zero1       Prohibited Any state1 Arkansas Constitution Article 19 Section 13 (PDF); and McGhee v. Arkansas Bd. of Collection Agencies, 289 S.W. 3d 18 (Ark. 2008) Attorney General’s Office
File a complaint
California $300 31 days 17.65%   Yes, CA license Yes Calif. Civil Code Section 1789.30 Dept. of Corp.
File a complaint
Colorado $500 ($500 max at any one time) >6 months 20%: $0-$300 + 7.5%: $301-$500   Yes, CO license Yes Colorado 5-3.1-101 Attorney General’s Office
File a complaint
Connecticut Zero       No Prohibited Connecticut General Statute Title 36a Chapter 668 Section 36a-563 Dept of Banking
File a complaint
Delaware $500 (5x/year); $1,000 max at one time 59 days No Limit   Yes, licensed Yes Delaware Code Title 5 Chapter 22 § 2227 Office of the State Bank Commissioner
File a complaint
DC Zero       Prohibited Prohibited District of Columbia Official Code Division V Title 26 Chapter 3 § 26-317 Dept of Insurance, Securities & Banking
File a complaint
Florida $500 & no more than 1 loan2 31 days 15% plus unlimited verification fee Upon default, a 60-day grace period followed by credit counselling (Fl. 560.404) Yes, FL license2 Yes Florida Title XXXIII Chapter 560 Part IV 560.401 Office of Financial Regulation
File a complaint
Georgia Zero       Prohibited Prohibited OCGA 16-17-1 Dept of Banking & Finance
File a complaint
Hawaii $600 32 days 17.65%   Yes Yes Hawaii Chap. 480F Div of Financial Institutions
File a  complaint
Idaho $1,000 No Limit No Limit   Yes Yes Idaho 28-46-401 Consumer Credit & Consumer Loan Section
File a complaint
Illinois $1,000 or 25% of borrower’s gross monthly income, whichever is less 120 days 15.50% Upon default, lender must offer 55-day payment plan at no cost (§ 2-40) Yes Yes 815 ILCS 122/1-1 Dept of Financial & Professional Regulation Consumer Credit Section
File a complaint
Indiana $550 or 20% of borrower’s gross monthly income, whichever is less >14 days 15% for first $250; 13% for $251-$400; 10% for $401-$500 After 3 consecutive loans, lender must offer extended payment plan of at least 4 equal installments at no cost. Yes Yes IC 24-4.5-7-101 Dept of Financial Institutions
File a complaint (PDF)
Iowa $500 max & no more than 2 loans 31 days 16.67%   Yes Yes Iowa Chapter 533D.1 Div. of Banking
File a complaint
Kansas $500 & no more than 2 loans 30 days 15%   Yes Yes Kansas 16a-2-404 and N-3 Payday Loan Regulation (PDF) Office of the State Bank Commissioner
File a complaint
Kentucky $500 & no more than 2 loans 60 days 17.65%   Yes Prohibited Ky 286.9-010 Office of Financial Institutions
File a complaint
Louisiana $350 30 days 25%   Yes No RS 9:3578:1 Office of Financial Institutions
File a complaint
Maine $300 No limit 15% for up to $200, 25% for $250-$300   Yes Yes Me. Rev. Stat. Ann. tit. 9-A Sec.1-201 & Me. Rev. Stat. Ann. tit. 9-A Sec.1-301 Bureau of Financial Institutions
File a complaint
Maryland Zero2       Prohibited2 Prohibited Md. Code Ann., Com. Law 12-301, 306. Division of Financial Regulation
File a complaint
Massachusetts Zero       Prohibited Prohibited Mass. Gen. Laws Ann. Ch. 140, Sec. 96; and 209 CMR 26.01 Office of Consumer Affairs & Business Regulation
File a complaint
Michigan $600 31 days 15% Available if you have 8 payday loans in last 12 months (MI Deferred Presentment Service Transactions FAQ) Yes Yes Michigan 487.2121 Office of Financial & Insurance Regulation
File a complaint
Minnesota $350 30 days Variable3   Yes Yes Minn. Statute 47.60 Dept of Commerce
File a complaint
Mississippi $400 30 days 20% <$250; 22% >$250   Yes Yes Miss. § 75-67-501 (PDF) repealed July 2012 Dept of Banking & Consumer Finance
File a complaint
Missouri $500 31 days 75%   Yes Yes Missouri Revised Statutes Chapter 408 Division of Finance
File a complaint
Montana $300 31 days 36% APR (not simple interest) + $1.39/$100   Yes Yes Montana 31-1-701 Division of Banking & Financial Institutions
File a complaint
Nebraska $500 34 days 17.65%   Yes Yes Nebraska 45-901 Dept of Banking & Finance
File a complaint
Nevada 25% of borrower's gross monthly income 35 days4 None Lender must offer 90-day repayment plan within 30 days after default (NRS 604A.475) Yes Yes Nevada 604A.010 Financial Institutions Division
File a complaint
New Hampshire $500 30 days 36% APR (not simple interest) + $15.50/100   Yes ? NH 399A:1 Banking Dept
File a complaint
New Jersey Zero       No Prohibited N.J. Stat. Ann. 2c: 21-19; and N.J. Admin Code 3:24-1.3 Dept of Banking & Insurance
File a complaint
New Mexico $2,500 (25% of monthly gross income cap) 35 days 15.5%   Yes Yes N.M. Stat. Ann. Sec.58-15-1 Financial Institutions Division
File a complaint
New York Zero       Prohibited Prohibited NY Penal Code 190.40 (PDF) Dept of Financial Services
File a complaint
North Carolina Zero       Prohibited Prohibited N.C. Gen. Stat. § 53-173 (PDF) Commissioner of Banks
File a complaint
North Dakota 500 (or $600 outstanding) 60 days 20%   Yes Yes ND 13-08-01 (PDF) Dept of Financial Institutions
File a complaint
Ohio $5002 (4 loans permitted/year) >31 days 28% APR2   Yes Yes Ohio Revised Code 1321.01 Division of Financial Institutions
File a complaint (PDF)
Oklahoma $500 45 days 15% Eligible on third consecutive loan, subject to a processing fee and 15-day cooling off period once repaid Yes Yes Oklahoma 59-3101 through 3119 (PDF) Dept of Consumer Credit
File a complaint
Oregon $50,0005 31 days-60 days 36% APR   Yes Yes Oregon 725 Div. of Finance & Corporate Securities
File a complaint
Pennsylvania Zero       No Prohibited 7 P.S. Sec. 6203 Dept of Banking
File a complaint
Rhode Island $500 & no more than 3 loans1 >13 days 10%1   Yes Any state1 RI 19-14.1-1 Dept of Business Regulation
File a complaint
South Carolina $5506 31 days 15%6   Yes Yes SC Title 34 § 34-39 Dept of Consumer Affairs
File a complaint
South Dakota $500 No Limit No Limit   Yes Yes SD 54-4-36 Division of Banking
File a complaint
Tennessee $5001 31 days 17.65%1   Yes Any state1 45-17-101; 2011 Public Chapter 205 Dept of Financial Institutions
File a complaint
Texas No Limit2 >7 days 12%2   Yes Yes Texas Admin. Code Title 7, Part 5, Sec. 83.604, and Finance Code Title 4, Subtitle B, Chapter 342, Subchapter E Office of the Consumer Credit Commissioner
File a complaint
Utah No Limit 10 weeks No Limit   Yes Yes 7-23-101 Dept of Financial Institutions
File a complaint
Vermont Zero       No Prohibited 9 V.S.A. Sec. 41a; 8 V.S.A. 2519 Dept of Financial Regulation
File a complaint
Virginia $500 2x borrower pay cycle 20% fee + 36% APR Upon default, lender must offer >60-day plan for repayment over 4 payments. (10VAC5-200-33) Yes Yes Virginia §6.2-1800 Bureau of Financial Institutions
File a complaint
Washington $700 or 30% of borrower’s gross monthly income, whichever is less 2x borrower pay cycle 15% Upon default, lender must offer installment plan (RCW 31.45.084) Yes Yes RCW 31.45 Dept of Financial Institutions
File a complaint
West Virginia Zero       Prohibited Prohibited W. Va. Code 46A-4-107; and W Va. Code Sec. 32A-3-1 Division of Financial Institutions
File a complaint
Wisconsin No Limit 90 days No Limit   Yes Yes Wis. Stat. Sec. 138.14 Dept of Financial Institutions
File a complaint
Wyoming No Limit 1 calendar month $30 or 20%/month max   Yes Yes WY 40-14-362 Division of Banking
File a complaint
Notes 1. In this state, online loans follow the lender's state laws, and not the borrower's state laws.
2. In this state, lender may be regulated as a credit service organization (CSO). Generally, a CSO does not need to be licensed so there is no limit to the maximum loan or finance charge.
3. Minnesota: (i) On any amount up to and including $50, a charge of $5.50 may be added; (ii) on amounts in excess of $50, but not more than $100, a charge may be added equal to 10% of the loan proceeds plus a $5 administrative fee; (iii) on amounts in excess of $100, but not more than $250, a charge may be added equal to 7% of the loan proceeds with a minimum of $10 plus a $5 administrative fee; (iv) for amounts in excess of $250 and not greater than $350, a charge may be added equal to six percent of the loan proceeds with a minimum of $17.50 plus a $5 administrative fee. After maturity, the contract rate must not exceed 2.75% per month of the remaining loan proceeds after the maturity date calculated at a rate of 1/30 of the monthly rate in the contract for each calendar day the balance is outstanding.
4. Nevada: May be up to 90 days if: (a) The loan provides for payments in installments; (b) The payments are calculated to ratably and fully amortize the entire amount of principal and interest payable on the loan; (c) The loan is not subject to any extension; and (d) The loan does not require a balloon payment of any kind.
5. Oregon: 36% APR interest plus $10/$100 origination fee up to $30
6. South Carolina: Transaction may be handled as a consumer installment loan, not a "payday loan" per se, so there is no limit to the maximum loan or finance charge.
* Tribal lenders are not regulated by or subject to state laws.

Bills.com offers other state-by-state collections of consumer debt law, including:

Although we believe this information to be accurate as of the date of its posting, laws change, and we cannot guarantee the accuracy of the information provided. This is not legal advice, and you should consult lawyer who has consumer law experience for specific information and recommendations on how to resolve your situation.

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Comments (23)


Denise K.
Hartford, CT  |  May 26, 2014
I live in Connecticut and have three payday loans; they are killing me because I don't have the money to pay them off, they keep rolling over. Help
Bills.com
May 27, 2014
You mentioned you reside in Connecticut. As the table above indicates, payday loans are illegal in Connecticut. Read the Bills.com article You May Avoid Paying an Illegal Payday or Online Loan to learn how to handle the lender(s) of these illegal loans.
Ethan E.
Reno, NV  |  April 30, 2014
I think my payday loan is illegal. How can I be sure, and what should I do if it is?
Bills.com
April 30, 2014
Great question! Read the Bills.com article You May Avoid Paying an Illegal Payday or Online Loan to learn if you need to pay your (possibly) illegal payday loan.
Candy A.
Cordova, TN  |  February 04, 2014
Last August I got a loan from Western Sky for $1,000. I have since been making payment of $198 each month. I called to ask for a pay off amount and they're telling me $1,600! I've already paid close to $1,200 on this loan and have never missed a payment. I went online to the website (the loan is now being handled by Delbert services) and it says my loan was for $1,500 with an interest rate of 149%.....149%!?!?!. I only received $1,000. Is this legal?! I live in Tennessee, if that helps. I admit, I was very much in a jam when I got the loan and didn't read as closely as I probably should have but never thought the rates could be that high!! I have no problem paying what I owe, but is it really ok for them to charge me $1,800 in interest for a $1,000? That's $2,800! Am I stuck paying that?
Bills.com
February 05, 2014
The staggering repayment amount you mentioned for a Western Sky loan is in line with what other Bills.com readers and the media have reported.

See the Bills.com article Repay Your CashCall or Western Sky Loan? to learn how to handle your loan. You may not have to make any additional payments on this loan, depending on what you learn from your state attorney general.
Annie J.
Kinston, NC  |  January 25, 2014
I received a call yesterday from someone requesting the contact details of my attorney. When I asked for more details I was told it was for a $300 payday loan I took out in 2012 and that I was being charged for check fraud and that papers were being filed in my county. Initially he said that the company did not want repayment but then allowed for accepting $1113.17, paid via e-check from my account or by moneygram. I admit I have taken out several loans in the past but thought I had paid them all off. I've never received any type of written letter or notice, shouldn't I have? If this is a collection agency, am I allowed to ask for specific details of the originating payday company I took the loan from? Am I allowed to ask for a repayment plan?
Bills.com
January 27, 2014
Just because a voice on the telephone claims you owe a debt doesn't mean that's a fact. And just because someone says they plan to file a lawsuit against you doesn't mean they will. Assume you are dealing with a fake debt collector.

Send the collection agent a written debt validation notice. If the collection agent can validate the debt with written documentation, then consider negotiating a payment plan.
Avatar
Dawn C.
Louisburg, KS  |  April 01, 2014
I received a similar call. The man stated he was going to have my wages garnished and that I would be arrested for check fraud. The bank account he referenced was closed over a year ago. He only called twice and didn't leave a company name or who the debt was for. We called back and someone else said they had no information on what we were calling about and that it looks like the debt was paid but wanted me to still go my bank and find out. He has me scared to death of being arrested for check fraud. I know that I have not written a check on that account since it closed. I'm at a loss.
Brandi M.
Iota, LA  |  December 05, 2013
We live in Louisiana. My husband has been out of work for a month and a half with a broken foot. We owe a payday loan of $350 (that includes interest). We made the loan with a post-dated check. My question is, can the payday lender turn the post-dated check in to the district attorney? My husband is EXTREMELY worried he will go to jail over this.
Bills.com
December 06, 2013
Although I can't give legal advice, because only a lawyer may properly do so, I will share my opinion with you.

It is unlikely a district attorney will give this payday lender the time of day. Under the Louisiana Deferred Presentment and Small Loan Act: “A [payday lender] shall not: ... Threaten any customer with prosecution or refer for prosecution any check accepted as payment of a deferred presentment transaction and returned by the lender’s depository institution for reason of insufficient funds” (LSA-R.S. 9:3578.6(A)(5)). See the Louisiana Office of Financial Institutions staff interpretive letters (PDF) regarding this issue.
Stacy S.
Cadiz, OH  |  December 02, 2013
I'm in Ohio. I have three of these loans and they are killing me. They are all online loans from Rise ($1,100 principal) Cashnetusa ($300 principal) and Checkngo ($900 principal). They keep rolling over the loans because I don't have the money to repay them. What can I do?
Bills.com
December 13, 2013
Start by calling the Ohio Department of Commerce, Division of Financial Institutions at (614) 728-8400. See if the lenders are charging you in a way that is consistent with Ohio law. Be sure to ask about the number of rollovers permitted as well as if these entities are permitted to lend in Ohio and if the interest they charge is within legal limits.

If the loans are legal, your choices are to keep paying them or face collection efforts if you don't.
Mim P.
Gonzales, LA  |  November 26, 2013
In Louisiana, a payday loan place called my work and told my colleague if they didn't see me today they were going to the authorities. I'm SUPER embarrassed! Can a lender tell anyone I'm in debt like this? I didn't want my work knowing I was having trouble. Do I have any recourse against them for doing this?
Bills.com
November 26, 2013
What you described is a violation of the Fair Debt Collection Practices Act, a federal law setting the rules collection agents must follow. The FDCPA gives consumers a private right of action (the right to file a lawsuit) when a collection agent violates the law. Consult with a lawyer in your state who has consumer law or FDCPA experience. Some law firms specialize in this practice.
E'Shantali P.
Columbus, OH  |  November 20, 2013
I live in Ohio and took out a payday loan with Great Plains the early part of last year when I was having car trouble. The loan could not have been for more than $500. I thought the loan was paid off because the company was suppose to have been taking payments out of my account. Last month, my sister gets a phone call from legal services place in Georgia talking about they were going to issue a warrant for my arrest for bank fraud. I contacted the people, told the people that i did not know that the loan was not paid because the company had not contacted me. I paid the company $400 but now they want the remaining $1,000 by November 21,2013 otherwise they will have a warrant issued for my arrest for bank deposit fraud. I don't know what to do because I do not have $1,000 to pay them but they are not willing to work out a payment arrangement.
Bills.com
November 21, 2013
Assume you are dealing with a scam artist, until you can prove otherwise.

First, know your rights. Read the Bills.com articles How to Handle a Payday Loan and because you are an Ohio resident, Ohio Collection Laws. You will not be arrested for bank fraud.

Second, review your bank statements to learn the exact amount you borrowed, and how much Great Plains withdrew to repay the loan. Don't believe the collector's statement you owe anyone anything. Instead, believe what you read in your bank statements.

Third, if the payments did not occur, then review your contract with Great Plains and learn how much you need to repay. If the contract language is gobbledegook, then consult with a lawyer who has consumer law experience. He or she will explain your loan's terms and conditions. Decide how much (if anything) you owe.

Fourth, the next time the collection agent calls, ask for the collection agent's name, and the the name and address of his or her employer.

Fifth, if your bank statement evidence shows you need to repay the debt, then send the collection agent a debt validation letter. If the collection agent cannot validate the debt, then it cannot collect the debt. Again, you are still assuming at this point you are dealing with a scam artist. If the collection can validate the debt in writing, then open a negotiation to resolve the debt.

Finally, if the collection agent cannot or will not validate the debt, send it a cease communications notice and then file complaints with the Ohio attorney general's office (the link to which is in the table above) and the FTC.
Anne C.
Roseville, MN  |  January 30, 2013
Hello - I live in Minnesota and I've taken a $1000 loan from Plain Green Loans. I have been making payments regularly, but can no longer do that. Lost my job, just found a consulting job but won't get paid for a few weeks. I understand that PGL is owned by an Indian tribe. Supposedly, this means they're exempt from the MN laws that apply to other payday lenders. I'm taking this to mean that I'm stuck? Is that true? Something to do with Sovereign Immunity, maybe? My research tells me that it's no different for Indian tribes than any other lenders. Here's a link to a recent article about Indian tribes and their payday loans: http://www.businessweek.com/news/2012-06-04/payday-lenders-and-indian-tribes-evading-laws-draw-scrutiny So what are my options? I'm closing my checking account tomorrow and opening a new one as well as revoking ACH privileges. Really, I just want to stop paying all that interest and just pay back the principal over a period of time that suits my finances. Any advice would be appreciated. Thanks!
Bills.com
February 06, 2013
Payday loans are an expensive alternative and rarely solve a financial problem. Once you take the loan, you are obligated to pay it back based on the terms of the contract. Payday loans are regulated by law and the lender cannot charge rates that do not conform with the relevant law.

However, you are correct that the issue of Indian tribal lenders is an unclear issue. I recommend that you check out the Minnesota Attorney General's Web site website. You can also directly contact the Minnesota regulator for payday loans. If necessary contact a local attorney.
Jess F.
New York, NY  |  January 24, 2013
I am being harassed by calls claiming they are suing me because of two payday loans I took back in August 2008. I live in New York, and took the loan in NY 4 years ago. When they call they have the last four digits of my Social Security number and my e-mail address. What should I do? Please help!
Bills.com
January 24, 2013
You mentioned you reside in New York. See the Bills.com resource New York Payday Loan to learn specifics on how to handle a delinquent payday loan in New York.

For residents in other states, see the Bills.com article Repaying a Payday Loan.
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