Legal Status of Payday Lending by State
States regulate payday loans. In the past, states have set the payday loan rates at between 24 and 48 percent. In addition, many of the states have criminal laws on the books to prevent usurious rates so consumers can be protected from predatory loan practices.
The following states prohibit payday lending:
Arkansas
Connecticut
Georgia
Maryland
Massachusetts
New Jersey
New York
North Carolina
Pennsylvania
Vermont
West Virginia
The District of Columbia
The following states permit payday loans but at much lower rate than normally seen in payday lending and with more lender oversight:
Maine
New Hampshire
Ohio
Oregon
The following 30 states allow payday loans:
The chart below lists the state, fee and interest caps if any, APR and any loopholes based on a $250 loan.
The chart was compiled by the Consumer Federation of America (http://www.paydayloaninfo.org/legal.asp).
| State | Fee/interest cap |
APR for $250 |
Loophole |
| Alabama | 17.5% of loan | 456% | |
| Alaska | $15 per $100 +$5 | 443% | |
| Arizona | 15% of check | 460% | |
| California | 15% of check | 460% | |
| Colorado | 20% 1st $300 7.5% >$300 |
521% | |
| Delaware | No Cap | No Cap | |
| Florida | 10% of loan + up to $5 verification fee |
342% | |
| Hawaii | 15% of check | 460% | |
| Idaho | No Cap | No Cap | |
| Illinois | $15.50/$100 | 404% | Loans over 120 days: No Cap |
| Indiana | 15% 1st $250 13% $251 to $400 10% $401 – $550 |
391% | |
| Iowa | $15 1st $100 $10/$100 thereafter |
358% | |
| Kansas | 15% of loan | 391% | |
| Kentucky | 15% of check | C460% | |
| Louisiana | 16.75% of check Up to $45 + $5 doc fee |
521% | |
| Michigan | 15% 1st $100 14% $101-$200, 13% $201-$300, 12% $301-$400, 11% $400-$600 + fee |
375% | |
| Minnesota | 7% of loan +$5 fee | 235% | Industrial Loans: No Cap |
| Mississippi | 18% of check | 572% | |
| Missouri | Max 75% of loans | 1,955% | |
| Montana | 25% of loan | 652% | |
| Nebraska | $15 per $100 ck | 460% | |
| Nevada | No Cap | No Cap | |
| New Mexico | $15.50/$100 + $0.50 per $100 fee |
409% | Installment Loans: No Cap |
| North Dakota | 20% + fee | 520% | |
| Oklahoma | $15/$100 1st $300 $10/$100 for $301-$500+fee |
396% | |
| Rhode Island | 15% of loan | 390% | |
| South Carolina | 15% of check | 460% | |
| South Dakota | No Cap | No Cap | |
| Tennessee | Lesser 15% of ck Or $30 max. |
313% | |
| Texas | $10 + 48% annually | 156% | Credit Services Org.: No Cap |
| Utah | No Cap | No Cap | |
| Virginia | 20% of loan +36% Annual interest + $5 |
610% | Open end line/No Cap With car title as security |
| Washington | 15% 1st $500, 10% if $500 to $700 |
390% | |
| Wisconsin | No Cap | No Cap | |
| Wyoming | 20%/mon. or $30 fee | 313% |
