Payday Loan Rules in Your State
Click your state or territory below to see the specific payday loan laws that apply to you.
Min/max term: 10-31 days
Min/max amount: $500
Finance charges & fees: 17.5% of loan
Specific payday loan laws: After the initial loan period and one rollover with the same customer, the full outstanding amount of the loan, is due and payable. If the borrower is unable to repay the outstanding balance in full, the payday lender may offer the customer an extended repayment option of four equal monthly installments of the remaining balance. If there are insufficient funds to pay a check on the date of presentment, the lender may charge an additional fee. (Alabama Deferred Presentment Services Act, Title 5, Chapter 18A)
Min/max term: 14 days minimum
Min/max amount: $500
Finance charges & fees: 15% or the lesser of $15 per $100 loaned + $5 fee
Specific payday loan laws: S.B. 272 Signed by governor 6/29/04, (Chapter 116) Gives the Department of Community and Economic Development additional licensing and regulatory authority over payday lenders that operate in the state; the regulation also gives borrowers the right to rescind the advance without cost before the end of the following business day; prohibits onerous collection practices by both payday lenders and payday third-party collectors, including the threat of criminal charges; prohibits the acceptance of collateral other than a check or other instrument; and defines the additional disclosures that lenders are required to make to clearly describe the advances and their uses for the borrowers.
Min/max term: 5 days minimum
Min/max amount: $50-$500
Finance charges & fees: 15% of amount loaned by the payday lender
Specific payday loan laws: A borrower may have only one outstanding payday loan at one time and the face amount, exclusive of any fees, cannot be more than five hundred dollars with a maximum of three rollovers. Several bills and laws that were introduced in the 2005 Legislative Session amend requirements for payday lenders, and loans.
Min/max term: 6-31 days
Min/max amount: $400
Finance charges & fees: 10% of amount loaned + $10 fee max.
Specific payday loan laws: Senate Bill 948 amended existing law protecting the military, and some licensing requirements.
Min/max term: 31 days
Min/max amount: $300
Finance charges & fees: 15% of amount loaned
Specific payday loan laws: A.B. 207 introduced in 2005 prohibits the fee for some deferred deposit transactions from exceeding an effective annual rate greater than 10 percent; In addition, the state requires that a check from a customer for these deferred deposit transactions to be made payable to the actual name of the licensee; Prohibits a check that has been held by a licensee for more than 31 days from being presented to a bank for payment.
Min/max term: 40 days
Min/max amount: $500
Finance charges & fees: 20% first $300; 7.5% of amount loaned in excess of $300
Specific payday loan laws: The law states that only one payday loan is allowed per borrower at a time.
Specific payday loan laws: The small loan laws of Connecticut permits payday lenders to operate and charge any interest rate or fees which the borrower agrees to pay, so the rules do not impact the businesses that operate that much in the state. In addition, lenders must comply with other provisions of the state’s small loan act and regulations. This amounts to very large annual percentage rates.
Min/max term: 60 days
Min/max amount: $500
Finance charges & fees: No limit
Specific payday loan laws: The small loan laws of Delaware permits payday lenders to operate and charge any interest rate or fees which the borrower agrees to pay. Lenders that operate here need to also comply with other provisions of the state’s small loan act. This amounts to very large annual percentage rates. H.B. 152: enacted 7/12/05 sets fees/damages for bad checks and provides that damages or fees may not be obtained for pay-day loans, made by a bank or licensed payday lenders.
Min/max term: 31 days
Min/max amount: $50 min; up to $1,000 per borrower
Finance charges & fees: $5 on amounts up to $250; $10 face amounts $250.01 to $500; $15 on face amounts $500.01 to $750; and $20 on face amounts of $750.01 to $1,000+ fees
Specific payday loan laws: The District of Columbia passed statutes specifically authorizing payday lending. The interest rates and fees that lenders are permitted to charge amount to very large annual percentage rates. The APR for a 14-day $100 loan is 419%. Payday lenders are permitted to add additional fees for handling, processing and verification on a sliding scale based on the amount borrowed.
Min/max term: 7-31 days
Min/max amount: $500 exclusive of fees
Finance charges & fees: 10% max + $5 fee
Specific payday loan laws: Florida passed statutes and various payday lending laws that are specifically authorizing payday lending. The interest rates and fees that lenders are permitted to charge amount to very large annual percentage rates. The APR for a 14 day, $100 loan is 390%.
Min/max amount: $3,000 min
Specific payday loan laws: In general Georgia law prohibits the making of any loans of $3,000 or less if that loan violates Georgia's usury law. Payday lenders in Georgia are not permitted to loan borrowers less than $3,000 for more than 16% APR. A payday lender is permitted to charge 16% APR if it attempts to loan money directly to its customers and only then if the in-state lender holds more than a 50% interest in the revenues from the loan. However a state chartered bank operating under the laws of another state and insured by the FDIC, that is not operating in violation of the federal and state laws applicable to that state charter, is not limited by Georgia's 16% cap. (See Georgia Code Ann. §§16-17-1 to 16-17-10).
Min/max term: 32 days
Min/max amount: $600
Finance charges & fees: 15% of face amount of the check
Specific payday loan laws: Hawaii passed statutes specifically authorizing payday lending. The interest rates and fees that lenders are permitted to charge amount to very large annual percentage rates. H.C.R. 172 authorizes a review of the registration of payday lenders.
Min/max term: n/a
Min/max amount: $1,000
Finance charges & fees: No limit
Specific payday loan laws: Idaho permits payday lenders to operate and charge any interest rate or fees which the borrower agrees to pay. Lenders must comply with other provisions of the state’s small loan act.
Min/max term: 13-45 days
Min/max amount: The lesser of $1,000 or 25% of borrower's gross monthly income, whichever is less.
Finance charges & fees: $15.50 per $100
Specific payday loan laws: Illinois permits payday lenders to operate in Illinois. Lenders must comply with other provisions of the state’s small loan act and may not make more than one loan to a borrower at any one time. The law caps the fee that can be charged to $15.50 per each $100. This amounts to a very high effective APR. The APR for a 14-day $100 loan is 403%. Payday lenders are regulated and licensed by the Division of Financial Institutions of the Department of Financial and Professional Regulation. The Payday Loan Reform Act (H.B. 1100) provides that the terms of loans, finance charges, renewals; revocations, suspensions, must be made available to the public.
Min/max term: 14 days minimum
Min/max amount: $50-$500 (but may not exceed borrower’s gross income)
Finance charges & fees: 15% on amounts <$250; 13% $251-$400; 10% $410-$500
Specific payday loan laws: Indiana permits payday lenders to operate and charge any interest rate or fees which the borrower agrees to pay. Lenders must comply with other provisions of the state’s small loan act. Indiana (permits the charging of $33 rather than the 36% per annum applicable to other loans). The APR for a 14-day $100 loan is 390%
Min/max term: 31 days
Min/max amount: $500
Finance charges & fees: $15 on first $100; $10 on each $100 after
Specific payday loan laws: Lender may make no loans for more than $500 to a borrower at any given time.
Min/max term: 7-30 days
Min/max amount: $500
Finance charges & fees: 15% + administrative fee
Specific payday loan laws: A lender may not have more than two loans outstanding to the same borrower at any one time and may not make more than three loans to any one borrower within a 30 calendar day period.
New legislation establishes limits on a payday lender’s ability to collect on payday loans from military borrowers:
- Lenders are prohibited from garnishing the wages of military borrowers;
- Lenders must defer all collection activity against a borrower who is deployed to combat or a combat support post for the duration of such posting; and
- Lenders may not contact any person in the military chain of command of a borrower in an attempt to make collection
Min/max term: 14-60 days
Min/max amount: $500
Finance charges & fees: $15 per $100 on amount loaned
Min/max term: 60 days
Min/max amount: $350
Finance charges & fees: 16.75% max. of amount loaned; $45 max fee
Specific payday loan laws: Louisiana laws in places require payday lenders to be licensed in the state. And rules prohibit them from attaching property when collecting on payday loans.
Maine permits payday lenders to operate and charge any interest rate or fees which the borrower agrees to pay. Lawmakers in Maine are considering approving changes to existing laws that would allow significant expansion of the payday loan industry. One of the proposed changes would allow lenders to charge as much as 17.5%, which would amount to $17.50 per $100. In addition, payday lenders are permitted to use advertising methods that are currently prohibited, and have greater leeway, in collection methods in the event of default than other types of creditors.
Maryland requires payday lenders to comply with the state’s small loan or criminal usury laws. Basically, since the allowable interest rates and fees are much lower than what the payday industry usually charges, payday lenders in these states are probably operating illegally.
Massachusetts state law requires that payday lenders need to comply with the state’s small loan or criminal usury laws. Basically, since the allowable interest rates and fees are much lower than what the payday industry usually charges, payday lenders in these states are probably operating illegally.
Min/max term: 31 days maximum
Min/max amount: $600
Finance charges & fees: 15% or the first $100; 14% of amounts $100-200 13% of amounts $200 - $300; 12% of $300-400 the fourth $100; 11% of amounts $400-$600 plus administrative fees
Specific payday loan laws: New legislation, the Deferred Presentment Service Transactions Act (H.B. 4834) signed by Governor Granholm will regulate payday lending in Michigan by limiting loan amounts to 600 in a 31 day period and allow lenders to charge up to 15% depending on the size of the loan. Borrowers are allowed only one loan at a time. The law requires all payday lenders to be licensed by June 1, 2006, by the Office of Financial and Insurance Services. The law establishes a statewide database for lenders to determine if customers have other open transactions; and allows borrowers to file complaints with the state. The law permits payday lenders to charge service transaction and service fees for each transaction.
Min/max term: 30 days
Min/max amount: $350
Finance charges & fees: Ranges from $5.50 for loans up to $50 to 6% + $5 for loans $250 to $350.
Specific payday loan laws: (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 ten percent 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 seven percent 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 percent 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. (Minnesota Small Loans - Chapter 47.60)
Min/max term: 30 days
Min/max amount: $400
Finance charges & fees: 18% loan amount
Specific payday loan laws: Mississippi passed statutes specifically authorizing payday lending. The fees and interest rates amount to very large annual percentage rates. The APR for a 14-day $100 loan is 572%.
Min/max term: 14-31 days
Min/max amount: $500
Finance charges & fees: 75%
Specific payday loan laws: Missouri passed statutes specifically authorizing payday lending. Lenders may not charge interest and fees in excess of 75% of the initial loan amount on any single authorized loan for the entire loan term and all authorized renewals. Otherwise, interest is set pursuant to small loan law which provides that parties may set rate by contract. The APR for a 14-day $100 loan is 1980%.
Min/max term: 31 days
Min/max amount: $50-$300
Finance charges & fees: 25% of face value of the check.
Specific payday loan laws: The maximum loan cannot exceed $300 plus fees and the minimum amount is $50 plus fees. A loan cannot exceed 25% of the borrower's monthly net income (take-home pay). A borrower cannot have more than 2 loans at any one time with a single payday lender. The total of the two loans cannot exceed the $300 maximum. Payday lenders are prohibited from renewing, refinancing or consolidating payday loans. However a payday lender may extend the term of the loaned beyond the due date for no additional charge. S.B. 165 provides that a borrower has the right to rescind for one day after signing a payday loan agreement; and permits lenders to require arbitration.
Min/max term: 31 days
Min/max amount: $500
Finance charges & fees: 15% per $100
Specific payday loan laws: There are no statutory limits on fees that may be charged so long as the borrower agreed to those fees in writing. This amount to a very high APR. Payday lenders are licensed in Nevada.
Min/max term:
Min/max amount:
Finance charges & fees:
Specific payday loan laws:
Min/max term: 7-30 days
Min/max amount: $500
Finance charges & fees: Only interest may be charged on loans; No fees are permitted.
Specific payday loan laws: New Hampshire permits payday lenders to operate and charge any interest rate or fees which the borrower agrees to pay. Lenders must comply with other provisions of the state’s small loan act. New Hampshire removed its interest rate cap effective 1/1/2000.
New Jersey does not have specific payday lending legislation and permits payday lenders to operate and charge any interest rate or fees which the borrower agrees to pay.
Finance charges & fees: No limit
Specific payday loan laws: New Mexico state law permits payday lenders to operate and charge any interest rate or fees which the borrower agrees to pay. Lenders must comply with other provisions of the state's small loan act.
New York does not have specific payday lending legislation and permits payday lenders to operate and charge any interest rate or fees which the borrower agrees to pay.
North Carolina passed statutes specifically authorizing payday lending. The fees and interest rates that payday lenders are permitted to charge amount to very large annual percentage rates. For example, North Carolina permits a 15% charge on a maximum loan amount of $300. This means that the consumer will receive $255 in cash and the lender will pocket a $45 fee. If a $300 loan at this rate is repaid in two weeks, the APR is about 458%.
Min/max term: 60 days
Min/max amount: $500
Finance charges & fees: 20% of loan plus database fee.
Specific payday loan laws: The maximum rate of interest that can be charged on a $200 loan is 30%.
Min/max term: 6 months
Min/max amount: $800
Finance charges & fees: 5% per month on unpaid balance plus $5 fee; plus $3.75 fee for every $50 above $500.
Specific payday loan laws: The APR for a 14-day $100 loan is 390%. Ohio law does allow these type of high interest rate loans to be issued.
Min/max term: 12-45 days
Min/max amount: $500
Finance charges & fees: 15% up to $300; 10% $300 to $500.
Specific payday loan laws: Oklahoma passed statutes specifically authorizing payday lending. The fees and interest rates that payday lenders are permitted to charge amount to very large annual percentage rates. APR for a 14-day $100 loan is 390%.
Min/max term: 60 days
Min/max amount: No more than 25% of net monthly income.
Finance charges & fees: No limit
Specific payday loan laws: New legislation enacted in 2006 (S.B. 1105), sets new restrictions on lenders by limiting the maximum rate of interest on payday loans, the amount of the loan origination fees; sets a minimum 31-day loan term for payday loans; prohibits charges other than interest, origination fees and fees for dishonored check or insufficient funds; prohibits the renewal of payday loans more than two times; prohibits a lender from making a new payday loan to a consumer within seven days of expiration of the previous payday loan; Limits the amount of the fee for a dishonored check or insufficient funds; prohibits recovery of statutory damages and attorney fees from consumers for dishonored checks; and grants rulemaking authority to Director of Department of Consumer and Business Services.
Pennsylvania state law does not have specific payday lending legislation and permits payday lenders to operate and charge any interest rate or fees which the borrower agrees to pay.
Puerto Rico requires payday lenders to comply with the territory’s small loan or criminal usury laws. Basically, since the allowable interest rates and fees are much lower than what the payday industry usually charges, payday lenders in this region are probably operating illegally.
Min/max term: 13 days minimum
Min/max amount: $500
Finance charges & fees: 15% of the face amount of the check.
Specific payday loan laws: Rhode Island state law requires payday lenders to comply with the state’s small loan or criminal usury laws. The APR for a 14-day $100 loan is 390%.
Min/max term: 31 days
Min/max amount: $300
Finance charges & fees: 15% of the face amount of the check.
Specific payday loan laws: South Carolina passed statutes authorizing payday lending. The fees and interest rates that payday lenders are permitted to charge amount to very large annual percentage rates. The APR for a 14-day $100 loan is 459%.
Min/max amount: $500
Finance charges & fees: No limit
Specific payday loan laws: South Dakota permits payday lenders to operate and charge any interest rate or fees which the borrower agrees to pay. Lenders must comply with other provisions of the state’s small loan act. This amounts to very large annual percentage rates.
Min/max term: 31 days
Min/max amount: $500
Finance charges & fees: 15% of the face amount of the check.
Specific payday loan laws: Tennessee passed statutes specifically authorizing payday lending. The fees and interest rates that payday lenders are permitted to charge amount to very large annual percentage rates. The effective APR for a 14-day $100 loan is 459%.
Min/max term: 7-31 days
Min/max amount: None
Finance charges & fees: 10% per loan plus 48% annual interest + $12 monthly fee.
Specific payday loan laws: Texas does not have specific payday lending legislation and permits payday lenders to operate and charge any interest rate or fees which the borrower agrees to pay. The effective APR for a 14-day $100 loan is 309%. S.B. 1479 protects military members and their families from some actions by payday lenders, and requires lenders to make special disclosures to military borrowers.
Min/max amount: None
Finance charges & fees: No limit
Specific payday loan laws: Utah passed statutes authorizing payday lending. The fees that payday lenders may charge amount to very large annual percentage rates, although the rules state that there is a limit on the interest that can be charged on judgments related to a payday loans.
Vermont does not have specific payday lending legislation or laws in place and it permits payday lenders to operate and charge any interest rate or fees which the borrower agrees to pay.
Min/max amount: $7,500
Specific payday loan laws: The Virgin Islands requires payday lenders to comply with the territory's small loan law which maintain interest rate caps of up to 26% per year. Basically, since the allowable interest rates and fees are lower than that which the payday lenders usually charge, payday loans are not practical.
Min/max term: 7 days minimum
Min/max amount: $500
Finance charges & fees: 15% plus a fee for 6% late payments.
Min/max term: 45 days
Min/max amount: $700
Finance charges & fees: 15% up to $500; 10% of the principal in excess of $500
Specific payday loan laws: Licenses lenders may loan up to $700 at one time, In general the usury rate in Washington is 12% per year or 4% above the treasury bill rate. However Washington state-chartered Credit Unions may offer loans to their members at 15%. Washington requires payday lenders to be licensed and has special rules for military borrowers: Payday lenders are prohibited from:
- Garnishing a military borrower’s wages
- Contacting the borrower’s chain of command in an effort to collect on a delinquent loan; and
- Make a loan to a person that the licensee knows is a military borrower from a location that a military base commander has notified the licensee in writing is designated off-limits to military personnel
- May not collect against a military borrower who has been deployed to a combat or combat support post for the duration of the posting
- Must honor the terms of any repayment agreement negotiated between the borrower and lender, or through military counselors or third party credit counselor on behalf of the military borrower
A “military borrower” includes any active duty member of the armed forces of the United States, any member of the National Guard or the reserves of the armed forces of the United States who has been called to active duty S.B. 5415. The effective APR for a 14-day $100 loan is 390%.
West Virginia, in an apparent attempt to discourage payday loans, passed laws which requires payday lenders to comply with the state’s small loan and usury laws. Basically since the allowable interest rates and fees are substantially below that which the payday industry charges, payday lenders in these states are likely operating illegally.
Finance charges & fees: No limit
Specific payday loan laws: Wisconsin permits payday lenders to operate and charge any interest rate or fees which the borrower agrees to pay. Lenders must comply with other provisions of the state’s small loan act.
Min/max term: 30 days
Finance charges & fees: $30 or 20%, of the principal whichever is greater
Specific payday loan laws: Wyoming law regulates payday lenders with physical addressees in Wyoming, which must be licensed. The rates are based in a full calendar month. For example if the total amount loaned is $100 the most that could be charged is $30 since $30 is greater than $20 which is 20% of the amount borrowed. If the amount borrowed is $200 for 14 days, the highest amount that may be charged is $30 [14 days/31 days x 20% x $200 = $18.06]. Rolling over is prohibited. A lender may permit the borrower to repay original finance charges in installments but may not charge an additional fee for that convenience. The APR for a 14-day $100 loan is 780%.