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The legal status of payday loans in the USA

Update date 03.10.2022

A payday loan is an expensive short-term financial solution. Some lenders call it cash advance. Typically, a borrower repays it on their next payday. We recommend getting payday loans only to cover unexpected expenses and emergencies. Each state regulates payday lending to protect its residents from predatory lending. Payday loans amount, interest, and fees must not exceed the value under your state law.

States allow payday loans

Alabama

Status: Legal

Maximum loan amount: $500

Loan term: 10-31 days

APR for 14-day $100 Loan: 456%

Maximum Finance Rate and Fees for every $100: 17.50%

Finance Charge for 14-day $100 Loan: $17.50

Alaska

Status: Legal

Maximum loan amount: $500

Loan term: minimum 14 days

APR for 14-day $100 Loan: 521%

Maximum Finance Rate and Fees for every $100: 15%

Finance Charge for 14-day $100 Loan: $20

California

Status: Legal

Maximum loan amount: $300

Loan term: maximum 31 days

APR for 14-day $100 Loan: 460%

Maximum Finance Rate and Fees for every $100: 15%

Finance Charge for 14-day $100 Loan: $17.65

Colorado

Status: Legal

Maximum loan amount: $500

Loan term: minimum 180 days

APR for 14-day $100 Loan: 36%

Maximum Finance Rate and Fees for every $100: ?

Finance Charge for 14-day $100 Loan: $ ?

Delaware

Status: Legal

Maximum loan amount: $1000

Loan term: maximum 60 days

APR for 14-day $100 Loan: 521%

Maximum Finance Rate and Fees for every $100: not specified

Finance Charge for 14-day $100 Loan: not specified

Florida

Status: Legal

Maximum loan amount: $500

Loan term: 7-31 days

APR for 14-day $100 Loan: 391%

Maximum Finance Rate and Fees for every $100: ?

Finance Charge for 14-day $100 Loan: 10% for every $100 (plus verification fee not more than $5)

Hawaii

Status: Legal

Maximum loan amount: $600

Loan term: maximum 32 days

APR for 14-day $100 Loan: 460%

Maximum Finance Rate and Fees for every $100: ?

Finance Charge for 14-day $100 Loan: 15% of the loan amount

Idaho

Status: Legal

Maximum loan amount: $1000

Loan term: not specified

APR for 14-day $100 Loan: 652%

Maximum Finance Rate and Fees for every $100: not specified

Finance Charge for 14-day $100 Loan: not specified

Illinois

Status: Legal

Maximum loan amount: $1000 or 25% of the gross monthly income, whichever is less

Loan term: from 13 days to 120 days

APR for 14-day $100 Loan: 36% including $1 loan verification fee

Maximum Finance Rate and Fees for every $100: 36%

Finance Charge for 14-day $100 Loan: ?

Indiana

Status: Legal

Maximum loan amount: from $50 minimum to $605 maximum (and not in excess of 20% of of the gross monthly income)

Loan term: minimum 14 days

APR for 14-day $100 Loan: 391%

Maximum Finance Rate and Fees for every $100: ?

Finance Charge for 14-day $100 Loan: 10%, 13% or 15% depending on the loan amount

Iowa

Status: Legal

Maximum loan amount: $500

Loan term: maximum 31 days

APR for 14-day $100 Loan: 337%

Maximum Finance Rate and Fees for every $100: ?

Finance Charge for 14-day $100 Loan: maximum $15 for a loan up to $100 plus not more than $10 on subsequent $100

Kansas

Status: Legal

Maximum loan amount: $500

Loan term: 7-30 days

APR for 14-day $100 Loan: 391%

Maximum Finance Rate and Fees for every $100: ?

Finance Charge for 14-day $100 Loan: $15

Kentucky

Status: Legal

Maximum loan amount: $500

Loan term: 14-60 days

APR for 14-day $100 Loan: 417%

Maximum Finance Rate and Fees for every $100: ?

Finance Charge for 14-day $100 Loan: $16

Louisiana

Status: Legal

Maximum loan amount: $350

Loan term: maximum 60 days

APR for 14-day $100 Loan: 782%

Maximum Finance Rate and Fees for every $100: ?

Finance Charge for 14-day $100 Loan: $30

Maine

Status: Legal

Maximum loan amount: $2000

Loan term: not specified

APR for 14-day $100 Loan: 30% for loans up to $2000

Maximum Finance Rate and Fees for every $100: ?

Finance Charge for 14-day $100 Loan: maximum $5 for a loan up to $75; $15 for $75-$250 loans; and $25 for loans above $250.

Michigan

Status: Legal

Maximum loan amount: $600

Loan term: 31 days

APR for 14-day $100 Loan: 407%

Maximum Finance Rate and Fees for every $100: ?

Finance Charge for 14-day $100 Loan: $15.61

Minnesota

Status: Legal

Maximum loan amount: $350

Loan term: 30 days

APR for 14-day $100 Loan: 391%

Maximum Finance Rate and Fees for every $100: ?

Finance Charge for 14-day $100 Loan: $15

Mississippi

Status: Legal

Maximum loan amount: $500

Loan term: 30 days (minimum 28 days if loan amount is between $250 and $500)

APR for 14-day $100 Loan: 521%

Maximum Finance Rate and Fees for every $100: ?

Finance Charge for 14-day $100 Loan: $20

Missouri

Status: Legal

Maximum loan amount: $500

Loan term: 14-31 days

APR for 14-day $100 Loan: 443%

Maximum Finance Rate and Fees for every $100: maximum 75% of the initial loan amount (for the life of the loan plus all renewals)

Finance Charge for 14-day $100 Loan: ?

Montana

Status: Legal

Maximum loan amount: $300

Loan term: 31 days

APR for 14-day $100 Loan: 36%

Maximum Finance Rate and Fees for every $100: ?

Finance Charge for 14-day $100 Loan: $1.38

New Hampshire

Status: Legal

Maximum loan amount: $500

Loan term: 7-30 days

APR for 14-day $100 Loan: 36%

Maximum Finance Rate and Fees for every $100: ?

Finance Charge for 14-day $100 Loan: $1.38

Nebraska

Status: Legal

Maximum loan amount: $500

Loan term: maximum 34 days

APR for 14-day $100 Loan: 391%

Maximum Finance Rate and Fees for every $100: ?

Finance Charge for 14-day $100 Loan: $15

Nevada

Status: Legal

Maximum loan amount: 25% of gross monthly income

Loan term: maximum 35 days

APR for 14-day $100 Loan: not specified

Maximum Finance Rate and Fees for every $100: ?

Finance Charge for 14-day $100 Loan: not specified

North Dakota

Status: Legal

Maximum loan amount: $500

Loan term: maximum 60 days

APR for 14-day $100 Loan: 521%

Maximum Finance Rate and Fees for every $100: ?

Finance Charge for 14-day $100 Loan: $20

Ohio

Status: Legal

Maximum loan amount: $1000

Loan term: 91 days-1 year

APR for 14-day $100 Loan: 28%

Maximum Finance Rate and Fees for every $100: ?

Finance Charge for 14-day $100 Loan: a monthly maintenance fee that’s the lesser of 10% of the loan’s principal or $30 is allowed; 2% loan origination charge is allowed for a loan of $500 and more (the loan origination charge interest is not allowed)

Oklahoma

Status: Legal

Maximum loan amount: $500

Loan term: maximum 12-45 days

APR for 14-day $100 Loan: 207% (17% monthly)

Maximum Finance Rate and Fees for every $100: ?

Finance Charge for 14-day $100 Loan: $15 plus database fee

Oregon

Status: Legal

Maximum loan amount: $50000

Loan term: maximum 31-60 days

APR for 14-day $100 Loan: 36%

Maximum Finance Rate and Fees for every $100: ?

Finance Charge for 14-day $100 Loan: ?

Rhode Island

Status: Legal

Maximum loan amount: $50000

Loan term: minimum 13 days

APR for 14-day $100 Loan: 261%

Maximum Finance Rate and Fees for every $100: maximum 10% of the loan amount

Finance Charge for 14-day $100 Loan: ?

South Carolina

Status: Legal

Maximum loan amount: $550

Loan term: minimum 31 days

APR for 14-day $100 Loan: not specified, up to 391%; no lender in South Carolina is now allowed to offer loans to the military in excess of 36% APR

Maximum Finance Rate and Fees for every $100: maximum 15% of the loan amount

Finance Charge for 14-day $100 Loan: ?

South Dakota

Status: Legal

Maximum loan amount: $500

Loan term: maximum 6 months

APR for 14-day $100 Loan: 36%

Maximum Finance Rate and Fees for every $100: ?

Finance Charge for 14-day $100 Loan: $1.39

Tennessee

Status: Legal

Maximum loan amount: $500

Loan term: maximum 31 days

APR for 14-day $100 Loan: 460%

Maximum Finance Rate and Fees for every $100: ?

Finance Charge for 14-day $100 Loan: $17.65

Texas

Status: Legal

Maximum loan amount: not specified

Loan term: 7-180 days

APR for 14-day $100 Loan: can exceed 400%

Maximum Finance Rate and Fees for every $100: ?

Finance Charge for 14-day $100 Loan: >$30 => $1 for each $5

[$30 – $100] => 1/10 of the loan amount + $3 /mo (<$35)

[$35 – $70] => $3.50/mo + $4/mo (>$70)

>$100 => $10 + $4/mo for each $100

Utah

Status: Legal

Maximum loan amount: not specified

Loan term: maximum 70 days

APR for 14-day $100 Loan: 658%

Maximum Finance Rate and Fees for every $100: ?

Finance Charge for 14-day $100 Loan: ?

Virginia

Status: Legal

Maximum loan amount: $2500

Loan term: 4-24 months

APR for 14-day $100 Loan: 36%

Maximum Finance Rate and Fees for every $100: ?

Finance Charge for 14-day $100 Loan: The maintenance fee up to 8% or $25 (monthly); Total costs are not more than 50%; The late fee is $20; No verification fee

Washington

Status: Legal

Maximum loan amount: $700 or 30% of gross monthly income, whichever is less

Loan term: maximum 45 days

APR for 14-day $100 Loan: 391%

Maximum Finance Rate and Fees for every $100: <$500 = 15%;

>$500 = 10%

Finance Charge for 14-day $100 Loan: $15

Wisconsin

Status: Legal

Maximum loan amount: Less of $1500 or 35% of income

Loan term: maximum 90 days

APR for 14-day $100 Loan: 74%

Maximum Finance Rate and Fees for every $100: 2.75%/mo

Finance Charge for 14-day $100 Loan: not specified

Wyoming

Status: Legal

Maximum loan amount: not specified

Loan term: maximum 1 month

APR for 14-day $100 Loan: 782%

Maximum Finance Rate and Fees for every $100:

Finance Charge for 14-day $100 Loan: $30 (or 20% per month)

States prohibit payday loans

Arizona, Arkansas, Connecticut, Georgia, Maryland, Massachusetts, New Jersey, New Mexico, New York, North Carolina, Pennsylvania, Vermont, West Virginia, and the District of Columbia.

Payday loans are illegal in these states.