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| State regulations on payday lending |
| By Laura
Bruce • Bankrate.com |
|
Payday loans are short-term, high-interest-rate loans
for usually no more than $500.
Many states have passed laws governing payday and small loans.
This chart, compiled by Consumer Federation of America,
details several important parameters including the minimum and maximum
term, minimum and maximum loan amounts, maximum fee that can be
charged, the cost of the loan per $100 to the consumer, and the
effective annual percentage rate that the consumer would pay if
the loan were taken out for a full year.
Terms of state payday and small loan laws for check-based
loans
| State |
Min./max
term |
Min./max
loan |
Maximum
fee |
Cost/$100 |
Effective
14-day
APR* |
| Alabama |
10/31 days |
no min./$500 |
17.5% of loan |
$17.50 |
455% |
| Alaska |
14/-- days |
no min./$500 |
15% + $5 fee |
$20 |
520% |
| Arizona |
5/-- days |
$50-$500 |
15% of ck ** |
$17.65 |
459% |
| Arkansas |
6/31 days |
no min./$400 ck |
10% + $10 |
$22.22 |
579% |
| California |
--/30 days |
no min./$300 ck |
15% of ck |
$17.65 |
459% |
| Colorado |
--/40 days |
no min./$500 |
20% first $300; 7.5% >$300 |
$20 |
520% |
| Delaware |
--/59 days |
no min./$500 |
No limit |
No limit |
No limit |
| Florida |
7/31 days |
no min./$500 |
10% + $5 fee |
$15 |
390% |
| Hawaii |
--/32 days |
no min./$600 ck |
15% of ck |
$17.65 |
459% |
| Idaho |
NA |
no min./$1,000 |
No limit |
No limit |
No limit |
| Illinois -- eff. 12/6/05 |
13/120 days |
no min./$400 |
$15.50 per $100 |
$15.50 |
403% |
| Indiana |
14/-- days |
$50/$500 |
15% of first $250; 13% $250.01 to $400; 10%
$400.01 to $500 |
$15 |
390% |
| Iowa |
--/31 days |
no min./$500 ck |
$5 + 10% ck/first $100; $10/$100 |
$16.67 |
435% |
| Kansas |
7/30 days |
no min./$500 |
$15 per $100 |
$15 |
390% |
| Kentucky |
14/60 days |
no min./$500 ck |
$15 per $100 ck for 14 days |
$17.65 |
459% |
| Louisiana |
--/60 days |
no min./$350 |
16.75% ck; $45 max fee |
$20 |
520% |
| Minnesota |
--/30 days |
no min./$350 |
Ranges from $5.50 for loans up to $50 to 6%
+ $5 for loans $250 to $350 |
$15 |
390% |
| Mississippi |
--/30 days |
no min./$400 ck |
18% ck |
$22 |
572% |
| Missouri |
14/31 days |
no min./$500 |
75% of loan*** |
$75 |
1,980% |
| Montana |
--/31 days |
$50/$300 |
25% of loan |
$25 |
650% |
| Nebraska |
--/31 days |
no min./$500 ck |
15% per $100 |
$17.65 |
459% |
| Nevada |
NA |
No more than one-third of net monthly income |
No limit |
No limit |
No limit |
| New Hampshire |
7/30 days |
no min./$500 |
No limit |
No limit |
No limit |
| New Mexico |
NA |
NA |
No limit |
No limit |
No limit |
| North Dakota |
--/60 days |
no min./$600 |
20% of loan |
$20 |
520% |
| Ohio |
--/6 months |
no min./$800 |
5% + $5/$50; 5% + $3.75 over $500 |
$15 |
390% |
| Oklahoma |
12/45 days |
no min./$500 |
15% up to $300; 10% $300 to $500 |
$15 |
390% |
| Oregon |
--/60 days |
No more than 25% of net monthly income |
No limit |
No limit |
No limit |
| Rhode Island |
13/--- |
$500 |
15% ck |
$15 |
390% |
| South Carolina |
--/31 days |
no min./$300 |
15% ck |
$17.65 |
459% |
| South Dakota |
NA |
no min./$500 |
No limit |
No limit |
No limit |
| Tennessee |
--/31 days |
no min./$500 ck |
$15 ck |
$17.65 |
459% |
| Texas |
7/31 days |
$100-$350 |
48% APR + $10 monthly fee |
$11.87 |
309% |
| Utah |
NA |
no min./12 weeks |
No limit |
No limit |
No limit |
| Virginia |
7/-- days |
no min./$500 |
15% |
$15 |
390% |
| Washington |
--/45 days |
no min./$700 |
15% up to $500; 10% $500-$700 |
$15 |
390% |
| Wisconsin |
NA |
NA |
No limit |
No limit |
No limit |
| Wyoming |
--/30 days |
NA |
$30 or 20%, whichever is greater |
$30 |
780% |
| Washington, D.C. |
--/31 days |
$50/$1,000 |
10% + fee of $5 to $20 based on the amount of
loan |
$16.10 |
419% |
|
