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State Regulations for Payday Loans

While the federal government does issue and enforce laws on payday lending practices, each state also takes a position on how payday lenders may operate. For nitty gritty details, the National Conference of State Legislatures offers a comprehensive guide on payday lending limits in each state. For a quick reference, we’ve provided a brief summary of the best – and worst – state for getting a payday loan.

Easy Money: The Best States for Payday Lending

Over 30 states offer minimal restrictions on payday lending, making it easy for consumers to access quick cash when they need it. These states either impose no regulations on payday lending or allow interest rates in the triple digits, which allows for the typical $15 to $20 fee on a $100 loan.

AlabamaAlaskaCaliforniaDelawareFlorida
HawaiiIdahoIllinoisIndianaIowa
KansasKentuckyLouisianaMichiganMinnesota
MississippiMissouriNebraskaNevadaNew Mexico
North DakotaOklahomaRhode IslandSouth CarolinaSouth Dakota
TennesseeTexasUtahVirginiaWashington
WisconsinWyoming

Getting Tricky: States with Additional Limits or Regulations

These states don’t prohibit payday lending, but they do require lenders to abide by certain limits on interest. While some of these states have a set limit on loans and rates, others offer tiered levels depending on the loan terms. If you live in one of these states, do some additional research to learn about the limits before you set out to apply for a payday loan.

ColoradoMaineMontanaNew Hempshire
OhioOregon

Out of the Question: The Worst States for Payday Lending

These 13 states either completely prohibit payday loans or make it difficult for payday lenders to make loans by instituting rate caps on small loans of any kind.

ArizonaArkansasConnecticutGeorgia
MarylandMassachusettsNew YorkNew Jersey
North CarolinaPennsylvaniaVermontWest Virginia
Washington, DC

All of these varying regulations may seem confusing, but your lender is there to help you through the process. Reputable payday loan companies closely follow federal and state regulations to ensure you receive a loan that totally complies with all relevant regulations.

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