|
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%. |
