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State regulations on payday lending

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.

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The Consumer Federation of America says states that are not listed (Connecticut, Georgia, Maine, Maryland, Massachusetts, Michigan, New Jersey, New York, North Carolina, Pennsylvania, Vermont and West Virginia) have usury laws or small-loan rate caps that would make payday lending illegal under the rates usually charged. That doesn't necessarily mean that payday lending doesn't exist in those states. Consumer advocates say regulation is very uneven and payday lenders are often able to circumvent state laws.

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%
 
-- Posted: Sept. 12, 2005
   

 

 
 

 

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