State laws

Out of the 50 states, payday loan lending is legal in 27 states, with 9 others allowing some form of short term storefront lending with restrictions, while the remaining 14 prohibit any sort of payday advance lending. There are three main reasons for the bans set forth by the Federal regulation including, significantly higher rates of bankruptcy amongst consumers who take out the loans heavily due to the high interest rates, unfair and illegal debt collection practices, and automatic rollover loans which just compounds the total debt owed. Each state sets out their own rules and regulations such as maximum payday loan amount and maximum loan terms.

To find out whether your state allows payday lending and any restrictions, please visit: Payday Lending by State