Payday Loan List of States

Payday Loan List of States

Payday loans are small loans subject to individual state regulation. Traditionally states capped small loan rates at 24 to 48% annual interest and required installment repayment schedules for any small loans. Many states also have criminal usury laws in order to protect consumers. For example, New York 's criminal usury cap is 25% annual interest.

Payday loans are legal in states where legislatures exempted these lenders from small loan or usury caps. In states that repealed small loan rate caps or usury limits for licensed lenders, payday lenders are allowed to charge unlimited rates.

Prohibited by Small Loan Laws or Usury Caps

Currently there are 12 states and two territories that have small loan laws or usury caps that effectively prohibit payday lending at triple-digit interest rates. In Arkansas , the state Constitution caps rates at 17% annual interest, but the legislature enacted a law that permits check cashers to make single payment loans based on check holding. The constitutionality of payday lending at triple-digit interest rates in Arkansas is being challenged in the courts.

(Arkansas)
Connecticut
Georgia
Maine

Maryland
Massachusetts
New Jersey
New York

North Carolina

Pennsylvania
Vermont
West Virginia

Puerto Rico
Virgin Islands

Payday Loan List of States Authorized by Specific Payday Loan Laws or Licensed Lender Laws

These states enacted safe harbor legislation for payday lenders and permit loans based on checks written on consumers' bank accounts at triple digit interest rates. The only states that do not explicitly authorized payday loans by law are New Mexico and Wisconsin where licensed lenders are permitted to charge any rates they choose.

Alabama
Colorado
Idaho
Kansas
Minnesota
Nebraska
Ohio
South Carolina
Utah
District of Columbia 

Alaska
Delaware
Illinois
Kentucky
Mississippi
Nevada
Oklahoma
South Dakota
Virginia Arizona
Florida
Indiana
Louisiana
Missouri
New Hampshire
Oregon - also see on this website:  Payday Loan Oregon
Tennessee

Washington

California
Hawaii
Iowa
Michigan
Montana
North Dakota
Rhode Island
Texas
Wyoming

This ends the payday loan list of states but we will continue to update as laws change.