State payday loan laws

Program Overview

State payday loan laws and regulations. Most states have created rules and regulations that payday lenders need to adhere to. With many families taking on excessive debt, the laws that have been put into place by consumer protection bureaus or government regulators are meant to protect borrowers from excessively high fees and interest rates.

They also tend to set the maximum amount that can be obtained from a payday lender. If and when you do decide to take out a salary advance loan, but sure that you are dealing with a reputable lender, and be sure they follow all the laws and regulations that are in place in the state you live. These type of loans are already difficult enough to repay under ideal situations.

You do not need the process to be any more difficult by illegal or questionable lending practices. Since the process can be complicated, there may be times in which you want to speak to an attorney about predatory lending or payday loans to review the rules and regulations. Many states provide income eligible individuals with free legal advice, and attorneys can advise on these types of consumer debt issues.

Find more details on free lawyer advice .. State: Minimum / maximum payday loan term: Minimum / maximum payday loan amount: Finance charges and fees: Information on payday loan laws Alabama 10-31 days $500 17.5% of the total value of the payday loan After the initial payday 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 then decide to offer the customer an extended repayment option of four equal monthly installments of the remaining balance that is due. 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 minimum $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 that operate in the state; the regulation also 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 by the payday lender 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 a maximum of three rollovers. Several bills and laws that were 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; In addition, the state requires that 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 The law states that only one payday loan is allowed 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, so the rules do not impact the businesses that operate that much in the state.

In addition, lenders must comply with other provisions of the state’s small loan act and regulations. 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 that operate here need to also 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 and various payday lending laws that are 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 laws in places require payday lenders to be licensed in the state. And rules prohibit 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 meth

Who Can Apply

• Low-income individuals and families meeting income guidelines
• Participants in government assistance programs (SNAP, Medicaid, SSI)
• Recipients of federal housing assistance
• Those experiencing financial hardship or crisis situations

Application Process

Applications can typically be submitted online, by phone, or in person. You will need to provide documentation of your income, household size, and proof of participation in qualifying programs if applicable.

Benefits Available

This program provides various forms of financial assistance depending on your specific circumstances and needs. Benefits may include bill payment assistance, emergency aid, or ongoing support services.

Contact & Apply

For more information about this program, including application deadlines and specific requirements, visit the official resource link below or contact the administering organization directly.