Payday Loan Laws

Locate a Local Finance Lawyer

Find Lawyers in Other Categories
Most Common Finance Law Issues:

What Are Payday Loans?

Payday loans, which are also called "cash-advance" loans, are a small amount of money, typically $500 or less, that is lent under a high interest rate on the condition that the money, and the interest, will be repaid out of the borrower’s next paycheck. These loans can be repaid in a lump sum or over the course of several paychecks.

Are Payday Loans Legal?

Payday loans are usually legal, although there are many exceptions. Payday loan laws are complicated because they invoke several areas of law, such as:

Below is a general breakdown of state-by-state payday loan laws.

State

Payday Loans Legal?

Comments

Alabama

Yes

Max. Amount: $500

Term: 10-31 days

Alaska

Yes

Max. Amount: $500

Term: 14 days

Arizona

No

The Consumer Lenders Act prohibits these types of loans.

Arkansas

No

Citable as usury

California

Yes

Max. Amount: $300

Term: 31 days

Colorado

Yes

Max. Amount: $500

Term: 6 Months

Connecticut

No

Usury laws apply.

Delaware

Yes

Max. Amount: $500

Term: 60 days

Florida

Yes

Max. Amount: $500

Term: 7-31 days

Geogia

No

 

Hawaii

Yes

Max. Amount: $600

Term: 32 days

Idaho

Yes

Max. Amount: $1000

Term: Not specified

Illinois

Yes

Max. Amount: Either $1,000 or 25% of income, whichever is smaller.

Term: 13-45 days

Indiana

Yes

Max. Amount: $550

Term: 14 days

Iowa

Yes

Max. Amount: $500

Term: 31 days

Kansas

Yes

Max. Amount: $500

Term: 7-30 days

Kentucky

Yes

Max. Amount: $500

Term: 14-60 days

Louisiana

Yes

Max. Amount: $350

Term: Less than 60 days

Maine

Prohibited

Supervised lenders only

Maryland

No

Consumer Loan Act applies

Massachusetts

Prohibited

Small Loan Act applies; licensed lenders may provide small loans

Michigan

Yes

Max. Amount: $600

Term: 31 days

Minnesota

Yes

Max. Amount: $350

Term: 30 days

Mississippi

Yes

Max. Amount: $500

Term: 28 - 30 days

Missouri

Yes

Max. Amount: $500

Term: 14-31 days

Montana

Yes

Max. Amount: $300

Term: 31 days

Nebraska

Yes

Max. Amount: $500

Term: 34 days

Nevada

Yes

Max. Amount: 25% of expected gross income

Term: 35 days, up to 90 if initial agreement provides for installment payments and no extensions.

New Hampshire

Yes

Max. Amount: $500

Term: 7-30 days

New Jersey

No

Usury laws may apply.

New Mexico

Yes

Max. Amount: $2500

Term: 14 to 35 days; shorter time may be agreed to.

New York

No

 

North Carolina

No

After 2001, Consumer Finance Act applies

North Dakota

Yes

Max. Amount: $500

Term: 60 days

Ohio

Yes

Max. Amount: $500

Term: 31 days

Oklahoma

Yes

Max. Amount: $500

Term: 12-45 days

Oregon

Yes

Max. Amount: Unspecified

Term: At least 31 days

Pennsylvania

No

 

Rhode Island

Yes

Max. Amount: $500

Term: At least 31 days

South Carolina

Yes

Max. Amount: $550

Term: 31 days

South Dakota

Yes

Max. Amount: $500

Term: Unspecified

Tennessee

Yes

Max. Amount: $425

Term: 31 days

Texas

Yes

Max. Amount: Unspecified

Term: 7-31 days

Utah

Yes

Max. Amount: Any amount

Term: Up to 10 weeks

Vermont

No

 

Virginia

Yes

Max. Amount: $500

Term: At least 2 pay periods

Washington

Yes

Max. Amount: $700, or 30% of gross income, whichever is less

Term: Up to 45 days

West Virginia

No

Small loan act

Wisconsin

Yes

Max. Amount: $1500 or 35% of income, whichever is less

Term: 90 days or less

Wyoming

Yes

Max. Amount: Unspecified

Term: 1 month

Seeking Legal Advice

The laws surrounding payday loans can be complicated and they vary significantly from state to state. The chart above merely breaches the surface of a large, complex system of consumer lending. If you have a payday loan or are considering taking one in order to make ends meet, you should strongly consider contacting an attorney before taking any steps in the process. A local consumer protection attorney should be able to explain to you the laws of your state and advise what course of action is best for you.

Consult a Lawyer - Present Your Case Now!
Last Modified: 01-27-2017 12:35 PM PST

Find the Right Lawyer Now

Link to this page

Law Library Disclaimer

LegalMatch Service Mark