Payday Loan Laws State By State

Payday Loan Laws State By State
Bills.com Team
Feb 1, 2016

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.

StateMax LoanTermInterest (simple term)Repay-ment Plan LawStore-frontsOnline RegulatedLawRegulator
Alabama$50031 days17.50%; +3% after defaultRepayment plan required.Yes, AL licenseYesAlabama Sec. 5-18A-1Banking Dept
File a complaint
Alaska$500>14 days17.5% + $5 feeRepayment plan required.Yes, AK licenseYesAlaska Sec. 06.50.010Division of Banking & Securities
File a complaint
ArizonaZeroProhibitedProhibitedArizona Title 6 Chapter 12.1Dept of Financial Institutions
File a complaint
ArkansasZeroProhibitedAny stateArkansas 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$30031 days17.65%Yes, CA licenseYesCalif. Civil Code Section 1789.30Ca. Dept of Business Oversight.
File a complaint
Colorado$500 ($500 max at any one time)>6 months20%: $0-$300 + 7.5%: $301-$500Yes, CO licenseYesColorado 5-3.1-101Attorney General’s Office
File a complaint
ConnecticutZeroNoProhibitedConnecticut General Statute Title 36a Chapter 668 Section 36a-563Dept of Banking
File a complaint
Delaware$500 (5x/year); $1,000 max at one time59 daysNo LimitYes, licensedYesDelaware Code Title 5 Chapter 22 § 2227Office of the State Bank Commissioner
File a complaint
DCZeroProhibitedProhibitedDistrict of Columbia Official Code Division V Title 26 Chapter 3 § 26-317Dept of Insurance, Securities & Banking
File a complaint
Florida$500 & no more than 1 loan31 days15% plus unlimited verification feeUpon default, a 60-day grace period followed by credit counselling (Fl. 560.404)Yes, FL licenseYesFlorida Title XXXIII Chapter 560 Part IV 560.401Office of Financial Regulation
File a complaint
GeorgiaZeroProhibitedProhibitedOCGA 16-17-1Dept of Banking & Finance
File a complaint
Hawaii$60032 days17.65%YesYesHawaii Chap. 480FDiv of Financial Institutions
File a complaint
Idaho$1,000No LimitNo LimitYesYesIdaho 28-46-401Consumer Credit & Consumer Loan Section
File a complaint
Illinois$1,000 or 25% of borrower’s gross monthly income, whichever is less120 days15.50%Upon default, lender must offer 55-day payment plan at no cost (§ 2-40)YesYes815 ILCS 122/1-1Dept of Financial & Professional Regulation Consumer Credit Section
File a complaint
Indiana$550 or 20% of borrower’s gross monthly income, whichever is less>14 days15% for first $250; 13% for $251-$400; 10% for $401-$500After 3 consecutive loans, lender must offer extended payment plan of at least 4 equal installments at no cost.YesYesIC 24-4.5-7-101Dept of Financial Institutions
File a complaint (PDF)
Iowa$500 max & not more than 2 loans31 days16.67%YesYesIowa Chapter 533D.1Div. of Banking
File a complaint
Kansas$500 & no more than 2 loans30 days15%YesYesN-3 Payday Loan Regulation (PDF)Office of the State Bank Commissioner
File a complaint
Kentucky$500 & no more than 2 loans60 days17.65%YesProhibitedKy 286.9-010Office of Financial Institutions
File a complaint
Louisiana$35030 days25%YesNoRS 9:3578:1Office of Financial Institutions
File a complaint
Maine$300No limit15% for up to $200, 25% for $250-$300YesYesMe. Rev. Stat. Ann. tit. 9-A Sec.1-201 & Me. Rev. Stat. Ann. tit. 9-A Sec.1-301Bureau of Financial Institutions
File a complaint
MarylandZeroProhibitedProhibitedMd. Code Ann., Com. Law 12-301, 306.Division of Financial Regulation
File a complaint
MassachusettsZeroProhibitedProhibitedMass. Gen. Laws Ann. Ch. 140, Sec. 96; and 209 CMR 26.01Office of Consumer Affairs & Business Regulation
File a complaint
Michigan$60031 days15%Available if you have 8 payday loans in last 12 months (MI Deferred Presentment Service Transactions FAQ)YesYesMichigan 487.2121Office of Financial & Insurance Regulation
File a complaint
Minnesota$35030 daysVariableYesYesMinn. Statute 47.60Dept of Commerce
File a complaint
Mississippi$40030 days20% <$250; 22% >$250YesYesMiss. § 75-67-501 (PDF) repealed July 2012Dept of Banking & Consumer Finance
File a complaint
Missouri$50031 days75%YesYesMissouri Revised Statutes Chapter 408Division of Finance
File a complaint
Montana$30031 days36% APR (not simple interest) + $1.39/$100YesYesMontana 31-1-701Division of Banking & Financial Institutions
File a complaint
Nebraska$50034 days17.65%YesYesNebraska 45-901Dept of Banking & Finance
File a complaint
Nevada25% of borrower's gross monthly income35 daysNoneLender must offer 90-day repayment plan within 30 days after default (NRS 604A.475)YesYesNevada 604A.010Financial Institutions Division
File a complaint
New Hampshire$50030 days36% APR (not simple interest) + $15.50/100Yes?NH 399A:1Banking Dept
File a complaint
New JerseyZeroNoProhibitedN.J. Stat. Ann. 2c: 21-19; and N.J. Admin Code 3:24-1.3Dept of Banking & Insurance
File a complaint
New Mexico$2,500 (25% of monthly gross income cap)35 days15.5%YesYesN.M. Stat. Ann. Sec.58-15-1Financial Institutions Division
File a complaint
New YorkZeroProhibitedProhibitedNY Penal Code 190.40 (PDF)Dept of Financial Services
File a complaint
North CarolinaZeroProhibitedProhibitedN.C. Gen. Stat. § 53-173 (PDF)Commissioner of Banks
File a complaint
North Dakota$500 (or $600 outstanding)60 days20%YesYesND 13-08-01 (PDF)Dept of Financial Institutions
File a complaint
Ohio$500 (4 loans permitted/year)>31 days28% APRYesYesOhio Revised Code 1321.01Division of Financial Institutions
File a complaint (PDF)
Oklahoma$50045 days15%Eligible on third consecutive loan, subject to a processing fee and 15-day cooling off period once repaidYesYesOklahoma 59-3101 through 3119 (PDF)Dept of Consumer Credit
File a complaint
Oregon$50,00031 days-60 days36% APRYesYesOregon 725Div. of Finance & Corporate Securities
File a complaint
PennsylvaniaZeroNoProhibited7 P.S. Sec. 6203Dept of Banking
File a complaint
Rhode Island$500 & no more than 3 loans>13 days10%YesAny stateRI 19-14.1-1Dept of Business Regulation
File a complaint
South Carolina$55031 days15%YesYesSC Title 34 § 34-39Dept of Consumer Affairs
File a complaint
South Dakota$500No LimitNo LimitYesYesSD 54-4-36Division of Banking
File a complaint
Tennessee$50031 days17.65%YesAny state45-17-101; 2011 Public Chapter 205Dept of Financial Institutions
File a complaint
TexasNo Limit>7 days12%YesYesTexas Admin. Code Title 7, Part 5, Sec. 83.604, and Finance Code Title 4, Subtitle B, Chapter 342, Subchapter EOffice of the Consumer Credit Commissioner
File a complaint
UtahNo Limit10 weeksNo LimitYesYes7-23-101Dept of Financial Institutions
File a complaint
VermontZeroNoProhibited9 V.S.A. Sec. 41a; 8 V.S.A. 2519Dept of Financial Regulation
File a complaint
Virginia$5002x borrower pay cycle20% fee + 36% APRUpon default, lender must offer >60-day plan for repayment over 4 payments. (10VAC5-200-33)YesYesVirginia §6.2-1800Bureau of Financial Institutions
File a complaint
Washington$700 or 30% of borrower’s gross monthly income, whichever is less2x borrower pay cycle15%Upon default, lender must offer installment plan (RCW 31.45.084)YesYesRCW 31.45Dept of Financial Institutions
File a complaint
West VirginiaZeroProhibitedProhibitedW. Va. Code 46A-4-107; and W Va. Code Sec. 32A-3-1Division of Financial Institutions
File a complaint
WisconsinNo Limit90 daysNo LimitYesYesWis. Stat. Sec. 138.14Dept of Financial Institutions
File a complaint
WyomingNo Limit1 calendar month$30 or 20%/month maxYesYesWY 40-14-362Division 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:
    1. (i) On any amount up to and including $50, a charge of $5.50 may be added;
    2. (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;
    3. (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;
    4. (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:
    1. (a) The loan provides for payments in installments;
    2. (b) The payments are calculated to ratably and fully amortize the entire amount of principal and interest payable on the loan;
    3. (c) The loan is not subject to any extension; and
    4. (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.

Payday Loan Laws State by State. Source: Bills.com

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.