| State |
Min/Max Term |
Min/Max Loan |
Fees and Finance Charges |
Status of Laws |
| Alabama |
10-31days |
$500 |
17.5% of loan |
After the initial loan period and one rollover with the same
customer, the full outstanding amount of the loan, is due and
payable. If the borrower is unable to repay the outstanding balance
in full, the payday lender may offer the customer an extended
repayment option of four equal monthly installments of the remaining
balance. If there are insufficient funds to pay a check on the date
of presentment, the lender may charge an additional fee. (Alabama
Deferred Presentment Services Act, Title 5, Chapter 18A) |
| Alaska |
14 days min. |
$500 |
15% or the lesser of $15 per $100 loaned + $5 fee |
S.B. 272 Signed by governor 6/29/04, (Chapter 116) Gives the
Department of Community and Economic Development additional
licensing and regulatory authority over payday lenders; gives
borrowers the right to rescind the advance without cost before the
end of the following business day; prohibits onerous collection
practices by both payday lenders and payday third-party collectors,
including the threat of criminal charges; prohibits the acceptance
of collateral other than a check or other instrument; and defines
the additional disclosures that lenders are required to make to
clearly describe the advances and their uses for the borrowers. |
| Arizona |
5 days min. |
$50-$500 |
15% of amount loaned |
A borrower may have only one outstanding payday loan at one time and
the face amount, exclusive of any fees, cannot be more than five
hundred dollars with three rollovers. Several bills introduced in
the 2005 Legislative Session amend requirements for payday lenders,
and loans. |
| Arkansas |
6-31 days |
$400 |
10% of amount loaned + $10 fee max. |
Senate Bill 948 amended existing law protecting the military, and
some licensing requirements. |
| California |
31 days |
$300 |
15% of amount loaned |
A.B. 207 introduced in 2005 prohibits the fee for some deferred
deposit transactions from exceeding an effective annual rate greater
than 10 percent; Requires a check from a customer for these deferred
deposit transactions to be made payable to the actual name of the
licensee; Prohibits a check that has been held by a licensee for
more than 31 days from being presented to a bank for payment. |
| Colorado |
40 days |
$500 |
20% first $300; 7.5% of amount loaned in excess of $300 |
Only one loan per borrower at a time. |
| Connecticut |
|
|
|
The small loan laws of Connecticut permits payday lenders to operate
and charge any interest rate or fees which the borrower agrees to
pay. Lenders must comply with other provisions of the state’s small
loan act. This amounts to very large annual percentage rates. |
| Delaware |
60 days |
$500 |
No limit |
The small loan laws of Delaware permits payday lenders to operate
and charge any interest rate or fees which the borrower agrees to
pay. Lenders must comply with other provisions of the state’s small
loan act. This amounts to very large annual percentage rates. H.B.
152: enacted 7/12/05 sets fees/damages for bad checks and provides
that damages or fees may not be obtained for pay-day loans, made by
a bank or licensed payday lenders. |
| District of Columbia |
31 days |
$50 min; up to $1,000 per borrower |
$5 on amounts up to $250; $10 face amounts $250.01 to $500; $15 on
face amounts $500.01 to $750; and $20 on face amounts of $750.01 to
$1,000+ fees |
The District of Columbia passed statutes specifically authorizing
payday lending. The interest rates and fees that lenders are
permitted to charge amount to very large annual percentage rates.
The APR for a 14-day $100 loan is 419%. Payday lenders are permitted
to add additional fees for handling, processing and verification on
a sliding scale based on the amount borrowed. |
| Florida |
7-31 days |
$500 exclusive of fees |
10% max + $5 fee |
Florida passed statutes specifically authorizing payday lending. The
interest rates and fees that lenders are permitted to charge amount
to very large annual percentage rates. The APR for a 14 day, $100
loan is 390%. |
| Georgia |
|
$3,000 min |
|
In general Georgia law prohibits the making of any loans of $3,000
or less if that loan violates Georgia's usury law. Payday lenders in
Georgia are not permitted to loan borrowers less than $3,000 for
more than 16% APR. A payday lender is permitted to charge 16% APR if
it attempts to loan money directly to its customers and only then if
the in-state lender holds more than a 50% interest in the revenues
from the loan. However a state chartered bank operating under the
laws of another state and insured by the FDIC, that is not operating
in violation of the federal and state laws applicable to that state
charter, is not limited by Georgia's 16% cap. (See Georgia Code Ann.
§§16-17-1 to 16-17-10). |
| Hawaii |
32 days |
$600 |
15% of face amount of the check |
Hawaii passed statutes specifically authorizing payday lending. The
interest rates and fees that lenders are permitted to charge amount
to very large annual percentage rates. H.C.R. 172 authorizes a
review of the registration of payday lenders. |
| Idaho |
NA |
$1,000 |
No limit |
Idaho permits payday lenders to operate and charge any interest rate
or fees which the borrower agrees to pay. Lenders must comply with
other provisions of the state’s small loan act. |
| Illinois |
13-45 days |
The lesser of $1,000 or 25% of borrower's gross monthly income,
whichever is less. |
$15.50 per $100 |
Illinois permits payday lenders to operate in Illinois. Lenders must
comply with other provisions of the state’s small loan act and may
not make more than one loan to a borrower at any one time. The law
caps the fee that can be charged to $15.50 per each $100. This
amounts to a very high effective APR. The APR for a 14-day $100 loan
is 403%. Payday lenders are regulated and licensed by the Division
of Financial Institutions of the Department of Financial and
Professional Regulation. The Payday Loan Reform Act (H.B. 1100) provides that the terms of loans,
finance charges, renewals; revocations, suspensions, must be made
available to the public. |
| Indiana |
14 days min. |
$50-$500 ( but may not exceed borrower’s gross income) |
15% on amounts <$250; 13% $251-$400; 10% $410-$500 |
Indiana permits payday lenders to operate and charge any interest
rate or fees which the borrower agrees to pay. Lenders must comply
with other provisions of the state’s small loan act. Indiana
(permits the charging of $33 rather than the 36% per annum
applicable to other loans). The APR for a 14-day $100 loan is 390%
|
| Iowa |
31 days |
$500 |
$15 on first $100; $10 on each $100 after |
Lender may make no loans for more than $500 to a borrower at any
given time. |
| Kansas |
7-30 days |
$500 |
15% + administrative fee |
A lender may not have more than two loans outstanding to the same
borrower at any one time and may not make more than three loans
to any one borrower within a 30 calendar day period. New
legislation establishes limits on a payday lender’s ability to
collect on payday loans from military borrowers:
- Lenders are prohibited from garnishing the wages of military
borrowers;
- Lenders must defer all collection activity against a
borrower who is deployed to combat or a combat support post
for the duration of such posting; and
- Lenders may not contact any person in the military chain of
command of a borrower in an attempt to make collection.
|
| Kentucky |
14-60 days |
$500 |
$15 per $100 on amount loaned |
|
| Louisiana |
60 days |
$350 |
16.75% max. of amount loaned; $45 max fee |
Louisiana requires payday lenders to be licensed. And prohibits them
from attaching property when collecting on payday loans. |
| Maine |
|
|
|
Maine permits payday lenders to operate and charge any interest rate
or fees which the borrower agrees to pay. Lawmakers in Maine are
considering approving changes to existing laws that would allow
significant expansion of the payday loan industry. One of the
proposed changes would allow lenders to charge as much as 17.5%,
which would amount to $17.50 per $100. In addition, payday lenders
are permitted to use advertising methods that are currently
prohibited, and have greater leeway, in collection methods in the
event of default than other types of creditors. |
| Maryland |
|
|
|
Maryland requires payday lenders to comply with the state’s small
loan or criminal usury laws. Basically, since the allowable interest
rates and fees are much lower than what the payday industry usually
charges, payday lenders in these states are probably operating
illegally. |
| Massachusetts |
|
|
|
Massachusetts requires payday lenders to comply with the state’s
small loan or criminal usury laws. Basically, since the allowable
interest rates and fees are much lower than what the payday industry
usually charges, payday lenders in these states are probably
operating illegally. |
| Michigan |
<31 days |
$600 |
15% or the first $100; 14% of amounts $100-200 13% of amounts $200
- $300; 12% of $300-400 the fourth $100; 11% of amounts $400-$600
plus administrative fees
|
New legislation, the Deferred Presentment Service Transactions Act
(H.B. 4834)signed by Governor Granholm will
regulate payday lending in Michigan by limiting loan amounts to 600
in a 31 day period and allow lenders to charge up to 15% depending
on the size of the loan. Borrowers are allowed only one loan at a
time. The law requires all payday lenders to be licensed by June 1,
2006, by the Office of Financial and Insurance Services. The law
establishes a statewide database for lenders to determine if
customers have other open transactions; and allows borrowers to file
complaints with the state. The law permits payday lenders to charge
service transaction and service fees for each transaction. |
| Minnesota |
30 days |
$350 |
Ranges from $5.50 for loans up to $50 to 6% + $5 for loans $250 to
$350 |
(i) On any amount up to and including $50, a charge of $5.50 may be
added; (ii) on amounts in excess of $50, but not more than $100, a
charge may be added equal to ten percent of the loan proceeds plus a
$5 administrative fee; (iii) on amounts in excess of $100, but not
more than $250, a charge may be added equal to seven percent of the
loan proceeds with a minimum of $10 plus a $5 administrative fee;
(iv) for amounts in excess of $250 and not greater than $350, a
charge may be added equal to six percent of the loan proceeds with a
minimum of $17.50 plus a $5 administrative fee. After maturity, the
contract rate must not exceed 2.75 percent per month of the
remaining loan proceeds after the maturity date calculated at a rate
of 1/30 of the monthly rate in the contract for each calendar day
the balance is outstanding. (Minnesota Small Loans - Chapter 47.60)
|
| Mississippi |
30 days |
$400 |
18% loan amount |
Mississippi passed statutes specifically authorizing payday lending.
The fees and interest rates amount to very large annual percentage
rates. The APR for a 14-day $100 loan is 572%. |
| Missouri |
14-31 days |
$500 |
75% |
Missouri passed statutes specifically authorizing payday lending.
Lenders may not charge interest and fees in excess of 75% of the
initial loan amount on any single authorized loan for the entire
loan term and all authorized renewals. Otherwise, interest is set
pursuant to small loan law which provides that parties may set rate
by contract. The APR for a 14-day $100 loan is 1980%. |
| Montana |
31 days |
$50-$300 |
25% of face value of the check
|
The maximum loan cannot exceed $300 plus fees and the minimum amount
is $50 plus fees. A loan cannot exceed 25% of the borrower's monthly
net income (take-home pay). A borrower cannot have more than 2 loans
at any one time with a single payday lender. The total of the two
loans cannot exceed the $300 maximum. Payday lenders are prohibited
from renewing, refinancing or consolidating payday loans. However a
payday lender may extend the term of the loaned beyond the due date
for no additional charge. S.B. 165 provides that a borrower has the
right to rescind for one day after signing a payday loan agreement;
and permits lenders to require arbitration. |
| Nebraska |
31 days |
$500 |
15% per $100 |
A lender may only loan $500 maximum to any one borrower at a time.
Nebraska passed statutes specifically authorizing payday lending.
|
| Nevada |
NA |
Not to exceed 25% of the expected gross income of the borrower when
the loan is made |
NA |
There are no statutory limits on fees that may be charged so long as
the borrower agreed to those fees in writing. This amount to a very
high APR. Payday lenders are licensed in Nevada. |
| New Hampshire |
7-30 days |
$500 |
Only interest may be charged on loans; No fees are permitted |
New Hampshire permits payday lenders to operate and charge any
interest rate or fees which the borrower agrees to pay. Lenders must
comply with other provisions of the state’s small loan act. New
Hampshire removed its interest rate cap effective 1/1/2000. |
| New Jersey |
|
|
|
New Jersey does not have specific payday lending legislation and
permits payday lenders to operate and charge any interest rate or
fees which the borrower agrees to pay. |
| New Mexico |
NA |
NA |
No limit |
New Mexico permits payday lenders to operate and charge any interest
rate or fees which the borrower agrees to pay. Lenders must comply
with other provisions of the state's small loan act. |
| New York |
|
|
|
New York does not have specific payday lending legislation and
permits payday lenders to operate and charge any interest rate or
fees which the borrower agrees to pay. |
| North Carolina |
|
|
|
North Carolina passed statutes specifically authorizing payday
lending. The fees and interest rates that payday lenders are
permitted to charge amount to very large annual percentage rates.
For example, North Carolina permits a 15% charge on a maximum loan
amount of $300. This means that the consumer will receive $255 in
cash and the lender will pocket a $45 fee. If a $300 loan at this
rate is repaid in two weeks, the APR is about 458%. |
| North Dakota |
60 days |
$500 |
20% of loan plus database fee |
The maximum rate of interest that can be charged on a $200 loan is
30%. |
| Ohio |
6 months |
$800 |
5% per month on unpaid balance plus $5 fee; plus $3.75 fee for every
$50 above $500 |
The APR for a 14-day $100 loan is 390%. |
| Oklahoma |
12-45 days |
$500 |
15% up to $300; 10% $300 to $500 |
Oklahoma passed statutes specifically authorizing payday lending.
The fees and interest rates that payday lenders are permitted to
charge amount to very large annual percentage rates. APR for a
14-day $100 loan is 390%. |
| Oregon |
60 days |
No more than 25% of net monthly income |
No limit |
New legislation enacted in 2006 (S.B. 1105), sets new restrictions on lenders
by limiting the maximum rate of interest on payday loans, the amount
of the loan origination fees; sets a minimum 31-day loan term for
payday loans; prohibits charges other than interest, origination
fees and fees for dishonored check or insufficient funds; prohibits
the renewal of payday loans more than two times; prohibits a lender
from making a new payday loan to a consumer within seven days of
expiration of the previous payday loan; Limits the amount of the fee
for a dishonored check or insufficient funds; prohibits recovery of
statutory damages and attorney fees from consumers for dishonored
checks; and grants rulemaking authority to Director of Department of
Consumer and Business Services. |
| Pennsylvania |
|
|
|
Pennsylvania does not have specific payday lending legislation and
permits payday lenders to operate and charge any interest rate or
fees which the borrower agrees to pay. |
| Puerto Rico |
|
|
|
Puerto Rico requires payday lenders to comply with the state’s small
loan or criminal usury laws. Basically, since the allowable interest
rates and fees are much lower than what the payday industry usually
charges, payday lenders in these states are probably operating
illegally. |
| Rhode Island |
13 days min. |
$500 |
15% of the face amount of the check |
Rhode Island requires payday lenders to comply with the state’s
small loan or criminal usury laws. The APR for a 14-day $100 loan is
390%. |
| South Carolina |
31 days |
$300 |
15% of the face amount of the check |
South Carolina passed statutes authorizing payday lending. The fees
and interest rates that payday lenders are permitted to charge
amount to very large annual percentage rates. The APR for a 14-day
$100 loan is 459%. |
| South Dakota |
NA |
$500 |
No limit |
South Dakota permits payday lenders to operate and charge any
interest rate or fees which the borrower agrees to pay. Lenders must
comply with other provisions of the state’s small loan act. This
amounts to very large annual percentage rates. |
| Tennessee |
31 days |
$500 |
15% of the face amount of the check |
Tennessee passed statutes specifically authorizing payday lending.
The fees and interest rates that payday lenders are permitted to
charge amount to very large annual percentage rates. The effective
APR for a 14-day $100 loan is 459%. |
| Texas |
7-31 days |
None |
10% per loan plus 48% annual interest + $12 monthly fee |
Texas does not have specific payday lending legislation and permits
payday lenders to operate and charge any interest rate or fees which
the borrower agrees to pay. The effective APR for a 14-day $100 loan
is 309%. S.B. 1479 protects military members and
their families from some actions by payday lenders, and requires
lenders to make special disclosures to military borrowers. |
| Utah |
NA |
None |
No limit |
Utah passed statutes authorizing payday lending. The fees that
payday lenders may charge amount to very large annual percentage
rates, although there is a limit on the interest that can be charged
on judgments related to a payday loans. |
| Vermont |
|
|
|
Vermont does not have specific payday lending legislation and
permits payday lenders to operate and charge any interest rate or
fees which the borrower agrees to pay. |
| Virgin Islands |
|
$7,500 |
|
The Virgin Islands requires payday lenders to comply with the
state's small loan law which maintain interest rate caps of up to
26% per annum. Basically since the allowable interest rates and fees
are lower than that which the payday lenders usually charge, payday
loans are not practical. |
| Virginia |
7 days min. |
$500 |
15% plus a fee for 6% late payments |
In Virginia payday lenders must be licensed when making loans to
Virginia residents whether or not they have a business in
Virginia. Payday lenders cannot:
- Make more than one loan to a borrower at any time;
- Renew or extend any loan;
- Lend to military personnel located in certain locations
declared ‘off-limits’ by a military base commander;
- Garnish military wages or conduct collection activities
when the borrower is deployed to a combat or a combat
support post.
|
| Washington |
45 days |
$700 |
15% up to $500; 10% of the principal in excess of $500 |
Licenses lenders may loan up to $700 at one time, In general the
usury rate in Washington is 12% per year or 4% above the
treasury bill rate. However Washington state-chartered Credit
Unions may offer loans to their members at 15%. Washington
requires payday lenders to be licensed and has special rules for
military borrowers: Payday lenders are prohibited from:
- Garnishing a military borrower’s wages s;
- Contacting the borrower’s chain of command in an effort to
collect on a delinquent loan; and
- Make a loan to a person that the licensee knows is a
military borrower from a location that a military base
commander has notified the licensee in writing is designated
off-limits to military personnel
- May not collect against a military borrower who has been
deployed to a combat or combat support post for the duration
of the posting
- Must honor the terms of any repayment agreement negotiated
between the borrower and lender, or through military
counselors or third party credit counselor on behalf of the
military borrower
A "military borrower" includes any active duty member of the
armed forces of the United States, any member of the National
Guard or the reserves of the armed forces of the United States
who has been called to active duty S.B. 5415. The effective APR for a
14-day $100 loan is 390%.
|
| West Virginia |
|
|
|
West Virginia in an apparent attempt to discourage payday loans,
passed laws which requires payday lenders to comply with the state’s
small loan and usury laws. Basically since the allowable interest
rates and fees are substantially below that which the payday
industry charges, payday lenders in these states are likely
operating illegally. |
| Wisconsin |
NA |
NA |
No limit |
Wisconsin permits payday lenders to operate and charge any interest
rate or fees which the borrower agrees to pay. Lenders must comply
with other provisions of the state’s small loan act. |
| Wyoming |
30 days |
NA |
$30 or 20%, of the principal whichever is greater |
Wyoming law regulates payday lenders with physical addressees in
Wyoming, which must be licensed. The rates are based in a full
calendar month. For example if the total amount loaned is $100 the
most that could be charged is $30 since $30 is greater than $20
which is 20% of the amount borrowed. If the amount borrowed is $200
for 14 days, the highest amount that may be charged is $30 [14
days/31 days x 20% x $200 = $18.06]. Rolling over is prohibited. A
lender may permit the borrower to repay original finance charges in
installments but may not charge an additional fee for that
convenience. The APR for a 14-day $100 loanis 780%. |
Representative APR 
Implications of Non-payment