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Find Out the Laws and Limitations Regarding Payday Loans in Your State

When you are in desperate need of cash and don’t have any time to lose, you may consider the option of getting a payday loan. Payday loans are a type of short term cash advance loan for consumers who can prove steady income. Since no credit check is required, payday loans are one of the easiest cash advance loans to get.

The way that payday loans work is that the consumer writes a post-dated check to the payday lender for the amount of the loan plus a finance fee. The payday lender then advances the loan amount to the consumer for use for a limited time.  

The way that payday loans work is that the consumer writes a post-dated check to the payday lender for the amount of the loan plus a finance fee. The payday lender then advances the loan amount to the consumer for use for a limited time. The entire amount of the loan is then due at the end of the short loan term, along with additional finance charges. With a payday loan, the entire amount must be paid back in full within the allotted time or the consumer will end up owing additional money for finance fees and charges.

However, payday loans aren’t available to consumers in every state. Keep reading to find out about the laws regarding payday loans in North America and whether or not your state offers legal payday loans.

Laws Regarding Payday loans

The exact laws and regulations regarding payday loans vary from state to state. Below you will find lists of the states that payday loans are legal or not legal in. If your state is one of the states in which you can receive a payday loan, then your next step should be to find out about the cost of loan terms under your state’s law.

All that you have to do is visit the webpage for the National Consumer Law Center’s Summary of State Laws. You can also find out state-specific information about limits on loan renewals, how many loans a consumer can have, legal repayment plans, and the fees that lenders can charge when a payday loan is not repaid in a timely manner. You can also find out whether or not your state allows payday lenders to seek criminal action charges against consumers who fail to pay back payday loans through the summary of state laws.

States where payday loans are prohibited

Payday loans are prohibited in some North American states due to usury laws. You cannot get legal payday loans in the following states: Georgia, North Carolina, West Virginia, Pennsylvania, Washington D.C, Maryland, New Jersey, New York, Connecticut, Massachusetts, Vermont,

States where payday loans are legal

If your state’s payday laws do not prohibit payday loans, then this is a viable option for you to get quick cash. Eligible consumers can get legal payday loans in the following states: Florida, South Carolina, Virginia, New Hampshire, Alabama, Tennessee, Ohio, Louisiana, Indiana, Illinois, Michigan, Missouri, Wisconsin, Iowa, Texas, Oklahoma, Kansas, Nebraska, Minnesota, New Mexico, Colorado, Wyoming, Montana, Arizona, Idaho, Oregon, California, and Alaska.

Note that some states have limited legality for payday loans. If you live in Delaware or South Dakota, you may be permitted to get a payday loan under small loan act or licensing law. The legal status of payday loans in Rhode Island, Mississippi, Arkansas, Utah, Hawaii and Kentucky applies solely to check cashers. In Washington State the lender must have small loan endorsement added to their check casher license to be allowed to make payday loans. And payday loans are permitted for supervised lenders in the state of Maine, but otherwise prohibited.