This USA payday loans law review by state provides an overview of the laws governing payday loans. It’s best to find out about the laws relating to payday loans in your state before applying for a loan. If you are aware of your rights, lenders will not be able to take you for a ride.
Several states have passed laws to curtail payday lending in recent years. The Consumer Finance Protection Bureau (CFPB) is also planning to introduce stricter rules to regulate the payday lending industry at the national level.
This USA payday loans law review by state is a summary of the maximum loan amount, loan term and finance charges. It is based on datapublished by the National Conference of State Legislatures (NSCN). Additional fees and conditions apart from these also apply in many cases. For more information, please visit the website of the website of the National Conference of State Legislatures (NSCN).
Alabama: max.$500 for 10-31 days at up to17.5%
Alaska: max. $500 for at least 14 days at up to$15 per $100
California: max. $300 for up to 31 days at up to 15%
Colorado: max. $500for at least6 months; the finance charge depends on the loan amount
Delaware: max. $1,000 for less than 60 days, none
District of Columbia: prohibited
Florida: max. $500 for 7 – 31 days at up to 10%
Guam: not available
Hawaii: max. $600 for up to 32 days at up to 15%
Idaho: max. $1,000, not specified, none
Illinois: max. $1,000for 13-120 daysat up to $15.50 per $100
Indiana: $50-$550 for min. 14 days; the finance charge depends on the loan amount
Iowa: max. $500 for up to 31 days; the fee depends on the loan amount
Kansas: max. $500 for 7-30 days at up to 15%
Kentucky: max. $500 for up to 60 days atup to $15 per $100
Louisiana: max. $350 for up to 30 days at up to 16%
Maine: none, not specified
Michigan: max. $600 for up to 31 days; the service fee depends on the loan amount
Minnesota: max. $350 for up to 30 days; the finance charge depends on the loan amount
Mississippi: max. $500 for up to 30 days; the fee depends on the loan amount
Missouri: max. $500 for 14-31 days;the total fees and interest cannot exceed 75% of the initial loan amount
Montana: $50-$300, not specified, up to 36% per annum
Nebraska: max. $500 for up to 34 days at up to $15 per $100
Nevada: max. 25% of the gross monthly income of the customer, not specified
New Hampshire: max. $500 for 7 – 30 days at up to 36% per year
New Mexico: principal and fees cannot exceed 25% of the consumer’s gross monthly income; for 14 – 35 days at up to $15.50 per $100
North Carolina: prohibited
North Dakota: max. $500 for 15-60 days atup to 20%
Ohio: max. $500 for at least 31 days at up to 28% annual percentage rate
Oklahoma: max. $500 for 12-45 days; the finance charge depends on the loan amount
Oregon: max. $50,000 for 31-60 days atup to 36% per annum
Rhode Island: max. $500 for at least 13 days atup to 10%
South Carolina: max. $550 for up to 31 days at up to 15%
South Dakota: max. $500, not specified, none
Tennessee: max. $500 for up to 31 days at up to 15%
Texas: subject to detailed guidelines
Utah: none, a loan may not be rolled over beyond 12 weeks, none
Virginia: max. $500 for at least 2 timesthe pay cycle of the borrower; interest at up to 36% simple annual interest; a loan fee of up to 20%
Virgin Island: not available
Washington: max. $700or 30% of the borrower’s gross monthly income, whichever is lower, for up to 45 days; the fee depends on the loan amount
Wisconsin: none, not specified, none
Wyoming: none; up to 1 calendar monthfor $30 or up to 20% per month, whichever is greater
Lending to people with low incomes is a lucrative business and payday lenders use a variety of loopholes to get around the stricter laws. To circumvent state laws, payday lenders form partnerships with Indian tribes, call themselves credit repair organizations, provide simultaneous small loans, extend the periods of the loans by a few days or disguise themselves as mortgage lenders. Their methods are continuously changing.
Lenders form joint ventures with Indian tribes because state regulations don’t apply to them. They avoid describing the loans as payday loans and call them by some other name such as installment loans. These loans come with very high interest rates and borrowers are often trapped in a quagmire of debt.
People who apply for payday loans are often unaware of how these loans can affect their finances. They look for fast and easy ways of raising money to meet pressing requirements. Payday lenders are aware of their predicament and offer just what they’re looking for – fast and easy cash loans without any credit check, collateral or cosigner.
If you’re looking for a payday loan, consider the high costs andrisks associated withloans of this type.You need to be sure that you will be able to pay back the loan on time. Consider cheapersources of finance such as friends, relatives, banks and credit unions. You could also consider selling or pawning some assets that you don’t need.
If you’re facing chronic debt and credit problems, seek professional advice. Juggling several payday loans with punishing interest rates can do irreversible damage to your finances. Explore professional avenues that could enable you to earn more or try to moderate you needs and desires in line with with your income.
You will have to make major lifestyle changes to balance your budget. This may seem like a tall order, but not taking action could do lasting damage to the future of your family. You need to act decisively to balance your budget and repair your credit before it becomes almost impossible to do it.