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Each state enforces different payday loan laws. These rules regulate the term, cost and size of a payday loan. Some also prohibit coercive collection practices or ban certain types of fees. Many states apply very few restrictions, while others completely prohibit such lending. This guide offers a comprehensive look at each state's laws.
• Alabama caps payday loans at $500, with up to 17.5 percent interest. It also limits the number of loan "rollover" periods. Loan terms range from 10 to 31 days.
• Alaska requires a minimum loan term of 14 days and limits the principal to $500. Interest is capped at 15 percent and lenders cannot use aggressive collection practices.
• Arizona enforces a ban on payday lending. In the past, the Grand Canyon State imposed a 15 percent limit on interest rates.
• Arkansas also prohibits such lending. Before banning it, the state limited interest to 10 percent and capped loans at $400.
• California maintains a payday loan limit of $300 and restricts interest rates to no more than 15 percent. It caps some types of loans at 10 percent. The term cannot exceed 31 days.
• Colorado allows terms up to 40 days, but each borrower may only hold one payday loan at a time. Interest can be as high as 20 percent on loans up to $300. The state caps it at 7.5 percent on amounts between $300 and the $500 maximum.
• Connecticut does not regulate payday loan fees or interest rates.
• Delaware permits terms up to 60 days. Individuals can borrow a maximum of $500. There is no interest rate limit.
• The District of Columbia does not allow payday lending. It previously capped loans at $1,000.
• Florida restricts payday loans to a maximum of $500. It allows lenders to charge up to 10 percent interest, plus a $5 verification fee. Terms range from one week to 31 days.
• Georgia's laws prohibit most lenders from demanding high interest rates on loans under $3,000. This effectively bans payday lending.
• Hawaii maintains a loan term limit of 32 days and a maximum principal of $600. It limits check-cashing fees on deferred deposits to 15 percent.
• Idaho caps payday loans at $1,000. It does not regulate terms, fees or rates.
• Illinois limits interest and fees to a total of 15.5 percent. On a monthly basis, the borrower must earn at least four times the principal of a loan. Terms can be as short as 13 days or as long as 45.
• Indiana law calls for a minimum loan term of two weeks. The state doesn't allow loans of less than $50 or more than $500. Depending upon the principal, maximum rates range from 10 to 15 percent.
• Iowa limits loans to 31 days and $500. Lenders can charge up to 15 percent interest on the initial $100 and 10 percent on additional funds.
• Kansas caps loans at $500. Terms may range from one week to 30 days, and the maximum interest rate stands at 15 percent. Lenders cannot garnish military wages or offer over three payday loans to the same borrower in 30 days.
• Kentucky bars lenders from charging fees and interest equal to more than 15 percent of the principal. It permits loans of up to $500 and terms ranging from 14 to 60 days.
• Louisiana's laws cap the principal at $350 and allow loan terms of up to 60 days. Fees cannot exceed $45 or 16.75 percent.
• Maine does not regulate loan terms, fees or interest rates.
• Maryland maintains strict interest rate controls that effectively ban payday lending.
• Massachusetts also prohibits lending of this type.
• Michigan allows payday lenders to issue loans of up to $600 for a maximum of 30 days. The top interest rates are tiered; they range from 11 to 15 percent.
• Minnesota lets borrowers take out loans of up to $350 for a maximum of 30 days. Fees and interest cannot exceed $5.50 on amounts of $50 or less. Several different limits apply to other amounts.
• Mississippi does not permit loans in excess of $400. It allows loan terms no longer than 30 days. Rates can be as high as 18 percent.
• Missouri has one of the highest limits on interest and fees; lenders may charge up to 75 percent. Terms range from two weeks to 31 days. The state caps loans at $500.
• Montana law restricts the length of payday loans to 31 days and does not allow interest to exceed 36 percent. Residents cannot borrow more than four times their monthly after-tax income. The principal may range from $50 to $300.
• Nebraska lets payday lenders issue loans of up to $500 for a maximum of 31 days. It limits interest and fees to 15 percent.
• Nevada applies very few restrictions. However, an individual may not borrow more than 25 percent of his or her typical monthly income.
• New Hampshire does not allow payday lenders to charge fees in addition to interest. Each loan must have a principal of $500 or less and a term of seven to 30 days.
• New Jersey has not enacted laws to regulate this type of lending.
• New Mexico caps administrative fees at 15.5 percent and limits terms to 35 days. It also imposes borrower income restrictions.
• New York doesn't regulate the fees on payday loans or restrict loan terms.
• North Carolina prohibits payday lending.
• North Dakota allows loans of up to $500 and maximum terms of 60 days. Lenders cannot charge interest rates over 20 percent, although some additional fees may apply.
• Ohio strictly regulates payday loans. It caps annual interest at 28 percent and requires a minimum loan term of 31 days. The principal cannot exceed $500.
• Oklahoma's laws permit payday loans of $500 or less. Terms range from 12 to 45 days. Lenders may charge a maximum of 15 percent interest on the first $300 and 10 percent on amounts over $300.
• Oregon requires a loan term of 31 to 60 days. The principal cap is based on a borrower's income. Origination fees may not exceed $30 or 10 percent of the principal.
• Pennsylvania does not have payday lending laws.
• Rhode Island restricts loans to 15 percent interest and a $500 principal. The term must be at least 13 days.
• South Carolina caps loan terms at 31 days, and individuals cannot borrow more than $300 at a time. Interest and fees may not exceed 15 percent.
• South Dakota's laws don't place any limits on fees or interest rates. However, they do restrict loans to a maximum of $500.
• Tennessee permits loan terms of up to 31 days. Loans may not exceed $500. Total fees are capped at 15 percent.
• Texas allows terms of one week to 31 days. Lenders may charge a monthly fee of up to $10 and 48 percent annual interest.
• Utah only restricts the number of times a loan can be rolled over.
• Vermont allows payday lenders to charge any interest rate. The Green Mountain State doesn't regulate loan terms or apply any other special rules.
• Virginia requires each loan to have a principal of no more than $500 and a term of at least one week. It caps interest at 15 percent, although lenders can add verification fees and penalties for late payments.
• Washington limits loan terms to 45 days and caps the principal at $700. Interest may not exceed 15 percent on the initial $500 or 10 percent on amounts over $500. Borrower income restrictions apply.
• West Virginia's state government generally does not condone payday lending.
• Wisconsin has relatively few laws governing payday loans. Borrowers may take out multiple loans, but the total amount cannot exceed $1,500. The state also prohibits lenders from charging database fees.
• Wyoming limits loan terms to one month and does not allow lenders to roll over loans. It caps monthly interest and fees at 20 percent. However, lenders may charge $30 for 30-day loans under $150.
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