Payday Loans Debt Consolidation

Legal Restrictions On Basic Loan Terms As Per Payday Loan Law In Different States

In order to protect the rights and interests of consumers against predatory payday lending, the payday loan law in different states has imposed certain legal restrictions on loan terms, such as the maximum amount of loan a lender can offer, the length of the repayment period, and the maximum rates and fees that can be charged. Some states have even made these types of loan programs illegal. Others have strictly prohibited extremely high rates. Still, there are many states, where lenders are allowed to charge an unreasonably very high rate, but in most cases, there is a maximum cap. If you find out that your payday lender is charging you more than the legal limit allowed by your state or is violating any other provisions, you must file a complaint with your state authority. Please note that the following list is about the payday loan laws in those 34 states where this type of lending is legal. For details on those .

Wyoming (WY)
APR for a $100 loan for a 14-day period: 780%
Maximum Charges on a $100 loan for 14 days: $30
Maximum Fees Lenders Can Charge: 20% or $30, whichever is higher
Repayment Period: 1 calendar month
The maximum amount of loan lenders can offer: No Specific Provisions

Wisconsin (WI)
Wisconsin is the only state that has no specific payday loan law to regulate these types of lending practices.

Washington (WA)
The maximum amount of loan lenders can offer: $700
Loan term: up to 45 days
Maximum fees that can be charged: 15% on first $500 and 10% on the remaining portion of the loan (which cannot be higher than $200, as the maximum total loan limit is $700 only)
Maximum Fees on a $100 loan for 14 days: $15
APR for a $100 loan for a 14-day period: 390%

Virginia (VA)
The maximum amount of loan lenders can offer: $500
Repayment Period: At least 2 pay periods
Maximum Fees Lenders Can Charge: 20% of loan + $5 verification fee + 36% annual interest
Maximum Charges on a $100 loan for 14 days: $26.38
Annual Percentage Rate for a $100 loan for a 14-day period: 687.76%

Utah (UT)
There is no specific payday loan law for the maximum amount of loan lenders can offer. Besides that, there are also no limit on how much lenders can charge as financial rates and fees. But, the repayment Period for these loans in Utah may not be longer than 12 weeks.

Texas (TX)
The maximum amount of loan lenders can offer: No limit
Repayment Period: 7-31 days
Maximum Fees Lenders Can Charge: $10 per loan + 48% annual interest
Maximum Charges on a $100 loan for 14 days: $12
Annual Percentage Rate for a $100 loan for a 14-day period: 309%

Tennessee (TN)
Annual Percentage Rate for a $100 loan for a 14-day period: 459%
Maximum Charges on a $100 loan for 14 days: $17.65
Maximum Fees Lenders Can Charge: 15% of the check or $30, whichever is less
The maximum amount of loan lenders can offer: $500
Repayment Period: Max: 31 days

South Dakota (SD)
The maximum amount of loan lenders can offer is $500. But, there are no legal restrictions on the repayment period, maximum fees, or APR.

South Carolina (SC)
Annual Percentage Rate for a $100 loan for a 14-day period: 390%
Maximum Charges on a $100 loan for 14 days: $15
Maximum Fees Lenders Can Charge: 15% of principal
Repayment Period: Max: 31 days
The maximum amount of loan lenders can offer: $300

Rhode Island (RI)
Annual Percentage Rate for a $100 loan for a 14-day period: 260%
Maximum Charges on a $100 loan for 14 days: $10
Maximum Fees Lenders Can Charge: 10%
Repayment Period: Min: 13 days
The maximum amount of loan lenders can offer: $500

Oklahoma (OK)
Annual Percentage Rate for a $100 loan for a 14-day period: 390%
Maximum Charges on a $100 loan for 14 days: $15
Maximum Fees Lenders Can Charge: $15 per $100: $0- $300; $10 per $100: $301-$500
Repayment Period: 12-45 days
The maximum amount of loan lenders can offer: $500

North Dakota (ND)
Annual Percentage Rate for a $100 loan for a 14-day period: 520%
Maximum Charges on a $100 loan for 14 days: $20
Maximum Fees Lenders Can Charge: 20% + processing fee (no specific limit)
Repayment Period: up to 60 days
The maximum amount of loan lenders can offer: $500

New Mexico (NM)
Annual Percentage Rate for a $100 loan for a 14-day period: 417.14%
Maximum Charges on a $100 loan for 14 days: $16
Maximum Fees Lenders Can Charge: $15.50 per $100; $.50 verification fee per $100
Repayment Period: 14 to 35 days, can be shorter by written agreement
The maximum amount of loan lenders can offer: $2,500

Nevada (NV)
The maximum amount of loan lenders can offer is 25% of expected gross monthly income. The repayment period may not be longer than 60 days. As per the payday loan law in Nevada, the maximum fees may not be higher than the prime rate at the largest bank in the State plus 10%.

Nebraska (NE)
APR for a $100 loan for a 14-day period: 459%
Charges on a $100 loan for 14 days: May not be more than $17.65
Fees Lenders Can Charge: up to $15 per $100
Repayment Period: up to 31 days
The maximum amount of loan lenders can offer: $500

Montana (MT)
Annual Percentage Rate for a $100 loan for a 14-day period: 650%
Maximum Charges on a $100 loan for 14 days: $25
Maximum Fees Lenders Can Charge: 25%
Repayment Period: Max: 31 days
The maximum amount of loan lenders can offer: $300

Missouri (MO)
Annual Percentage Rate for a $100 loan for a 14-day period: 1980%
Maximum Charges on a $100 loan for 14 days: $75
The maximum amount of loan lenders can offer: $500
Fees Lenders Can Charge: The total cost of the loan may not more than 75% of the initial loan amount in any case (no matter how many times the loan has been renewed)
Repayment Period: May be between 14 and 31 days

Mississippi (MS)
APR for a $100 loan for a 14-day period: 572%
Maximum charges on a $100 loan for 14 days: $22
Maximum fees lenders can charge: 18% of check
Loan term: May not be longer than 30 days
Maximum amount of money you can borrow: $400

Minnesota (MN)
APR for a $100 loan for a 14-day period: 390%
Maximum charges on a $100 loan for 14 days: $15
Maximum Fees Lenders Can Charge: $5.50 on first $50; 10%+$5 on $51-$100; 7% (min. $10) + $5 on $101-$250; 6% (minimum $17.50) + $5 on $251-$350 Penalty – 2.75% per month if the loan is not repaid on the set due date
Repayment period: Max: 30 days
The maximum amount of loan lenders can offer: $350

Michigan (MI)
Annual Percentage Rate for a $100 loan for a 14-day period: 390%
Maximum Charges on a $100 loan for 14 days: $15
Maximum Fees Lenders Can Charge: 15% on the first $100, 14% on the second $100, 13% on the third $100, 12% on the fourth $100, 11% on the fifth $100, 11% on the sixth $100 + Processing fee (no limit)
Repayment Period: Max: 31 days
The maximum amount you can borrow: $600

Louisiana (LA)
APR for a $100 loan for a 14-day period: 650%
Maximum Charges on a $100 loan for 14 days: $25
Maximum Fees Lenders Can Charge: 16.75% of total loan amount or $45, whichever is higher. Besides that, the state payday loan law also allows an additional $5 documentation fee.
Penalty – 36% per year for first twelve months, and 18% per year thereafter
The maximum amount of loan lenders can offer: $350
Repayment Period: 60 days

Kentucky (KY)
Annual Percentage Rate for a $100 loan for a 14-day period: 459%
Maximum Charges on a $100 loan for 14 days: $17.65
Maximum Fees Lenders Can Charge: $1 database fee + $15 on every $100
The maximum amount of loan lenders can offer: $500
Repayment Period: Somewhere between 14 to 60 days

Kansas (KS)
Interest rate on $100 loan for a 14-day period: 390% per annum
Maximum Charges on a $100 loan for 14 days: $15
Maximum Fees Lenders Can Charge: 15%
The maximum amount of loan lenders can offer: $500
Repayment Period: 7-30 days

Iowa (IA)
Interest on $100 loan for a 14-day period: 433% per annum
Maximum Financial Charges on a $100 loan for 14 days: $16.67
Maximum Fees Lenders Can Charge: $15 on $0-$100 and $10 per $100 thereafter
The maximum amount of loan lenders can offer: $500
Repayment Period: may not exceed 31 days

Indiana (IN)
Annual Percentage Rate for a $100 loan for a 14-day period: 390%
Maximum Charges on a $100 loan for 14 days: $15
Maximum Fees Lenders Can Charge: 15%: $0-$250; 13%: $251-$400; 10%: $401-$500
Loan term: May not be less than 14 days
The maximum amount of loan lenders can offer: 20% of the gross monthly income of the borrower or $550, whichever is less

Illinois (IL)
Interest rate on $100 loan for a 14-day period: 403% per annum
Maximum Charges on a $100 loan for 14 days: $15.50
Maximum Fees Lenders Can Charge: $15.50 per $100
Repayment Period: 13-45 days
The maximum amount you can borrow: 25% gross monthly income of the borrower or $1000, whichever is lesser

Idaho (ID)
The maximum amount of loan lenders can offer: $1000
Maximum Charges on a $100 loan for 14 days:
There are no specific provisions regarding the minimum or maximum repayment period. There is also no payday loan law in this state to restrict the maximum fees or interest that lenders can charge.

Hawaii (HI)
The maximum amount of loan lenders can offer: $600
Repayment Period: Max: 32 days
Maximum Fees Lenders Can Charge: 15% of check
Maximum Charges on a $100 loan for 14 days: $17.65
Annual Percentage Rate for a $100 loan for a 14-day period: 459%

Florida (FL)
The maximum amount of loan lenders can offer: $500
Repayment Period: 7-31 days
Maximum Fees Lenders Can Charge: 10% + verification fee
Maximum Charges on a $100 loan for 14 days: $15
Annual Percentage Rate for a $100 loan for a 14-day period: 390%

Delaware (DE)
The maximum amount of loan lenders can offer: $500
Repayment Period: Max: 60 days
Besides that, there are no other legal restrictions. It is entirely up to the lender to decide how much interest or fee they want to charge.

Colorado (CO)
The maximum amount of loan lenders can offer: $500
Repayment Period: up to 6 Months
Maximum fees that can be charged on loan: 20% on $0-$300 and then 7.5% on $301-$500. Besides that, if the repayment is not made in time, there may also be an additional monthly maintenance fee $7.50 (for the first month; $45 thereafter) per $100 borrowed and 45% per annum interest.

California (CA)
APR for a $100 loan for a 14-day period: 459%
Maximum Charges on a $100 loan for 14 days: $17.65
Maximum Fees Lenders Can Charge: 15% of total loan amount
The maximum amount of loan lenders can offer: $300
Repayment Period: up to 31 days

Alaska (AK)
The maximum amount of loan lenders can offer: $500
Repayment Period: Min: 14 days
Maximum Fees Lenders Can Charge: $5 + the lesser of $15 per $100 or 15%
Maximum Charges on a $100 loan for 14 days: $20
Annual Percentage Rate for a $100 loan for a 14-day period: 520%

Alabama (AL)
The maximum amount of loan lenders can offer: $500
Repayment Period: 10-31 days
Maximum Fees Lenders Can Charge: 17.50%
Penalty: As per payday loan law in this state, there can also be an additional penalty charge of 3% per month if the borrower fails to repay on the set due date.
Maximum Charges on a $100 loan for 14 days: $17.50
Annual Percentage Rate for a $100 loan for a 14-day period: 456.25%


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Posted in Payday Loan Laws, Payday Loan Laws, Payday Loans, Payday Loans Debt Consolidation, Repayment Strategies | 3 Comments »

3 Responses to “Legal Restrictions On Basic Loan Terms As Per Payday Loan Law In Different States”

  1. [...] certain legal restrictions but they are not as strict as they are in these 16 states. You can click here to get the details on the basic payday loan terms legally allowed in other 34 states. Always remember, the more informed you are about the laws and your legal rights, the better you [...]

  2. [...] that are prohibited by law, such as charging a much higher rate of interest than allowed (here’s how much interest rate is allowed in your state). If you find out that your lender is also doing any such thing, you can file a [...]

  3. [...] everything associated with payday lending, such as the maximum amount of money a lender can offer, maximum number of loans that a borrower can have at a time, the maximum rates and fees lenders can charge, whether rollover [...]

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