Updated payday loan regulations by state
Date: Tue, 05/08/2012 - 19:34
Alabama
Maximum Loan Amount: $500
Maximum Finance Charges: $17.50 per $100 borrowed
[LEFT] State Licensed Online Lenders: CashCentral.com, CheckCity.com, ChecknGo.com
Licensing Requirements: Online lenders must be licensed in Alabama.[/LEFT]
Alaska
Maximum Loan Amount: $500
[LEFT] Maximum Finance Charges: $20 per $100 borrowed
State Licensed Online Lenders: CashCentral.com, CheckCity.com
Licensing Requirements: Online lenders must be licensed in Alaska.[/LEFT]
Arizona
Prohibited.
Arkansas
Maximum Loan Amount: $400 (No Limit)
[LEFT] Maximum Finance Charges: $22.22 per $100 borrowed (No Limit)
Legally Operating Online Lenders: If you know of any, contact us.
Licensing Requirements: Online lenders can be licensed in any state. Lenders would need to follow the laws of the state they are licensed out of, not the laws of Arkansas, so there is no limit to the maximum loan or finance charge.[/LEFT]
California
Maximum Loan Amount: $300
[LEFT] Maximum Finance Charges: $17.65 per $100 borrowed
State Licensed Online Lenders: CashCentral.com, CheckCity.com, ChecknGo.com, PayDayOne.com
Licensing Requirements: Online lenders must be licensed in California.[/LEFT]
Colorado
Maximum Loan Amount: $500
[LEFT] Maximum Finance Charges: $20 per $100 borrowed (plus interest rate of 45% per annum)
State Licensed Online Lenders: CheckCity.com
Licensing Requirements: Online lenders must be licensed in Colorado.
Connecticut
[/LEFT]
Prohibited.
Delaware
Maximum Loan Amount: $500
[LEFT] Maximum Finance Charges: No Limit
State Licensed Online Lenders: CashCentral.com, ChecknGo.com, DelawareFastCash.com, PayDayOne.com, QLoot.com
Licensing Requirements: Online lenders must be licensed in Delaware.[/LEFT]
District of Columbia
Prohibited.
Florida
Maximum Loan Amount: $500 (No Limit)
[LEFT] Maximum Finance Charges: $15 per $100 borrowed plus verification fee if applicable (No Limit)
Legally Operating Online Lenders: ChecknGo.com
Licensing Requirements: Online lenders must be licensed in Florida.[/LEFT]
[LEFT]Note: Lender may be regulated as a credit service organization (CSO). Generally, a CSO does not need to be licensed so there is no limit to the maximum loan or finance charge.[/LEFT]
Georgia
Prohibited.
Hawaii
Maximum Loan Amount: $600
[LEFT] Maximum Finance Charges: $17.65 per $100 borrowed
Legally Operating Online Lenders: CashCentral.com, CheckCity.com, ChecknGo.com, PayDayOne.com
Licensing Requirements: Online lenders are licensed and regulated by the Hawaii Department of Consumer Affairs, Office of Consumer Protection.[/LEFT]
Idaho
Maximum Loan Amount: $1000
[LEFT] Maximum Finance Charges: No Limit
State Licensed Online Lenders: CashCentral.com, CheckCity.com, ChecknGo.com, PayDayOne.com, QLoot.com
Licensing Requirements: Online lenders must be licensed in Idaho.[/LEFT]
Illinois
Maximum Loan Amount: Lesser of $1000 or 25% of borrower’s gross monthly income.
[LEFT] Maximum Finance Charges: $15.50 per $100
State Licensed Online Lenders: CheckCity.com, ChecknGo.com, PayDayOne.com
Licensing Requirements: Online lenders must be licensed in Illinois.[/LEFT]
Indiana
Maximum Loan Amount: Lesser of $550 or 20% of borrower’s gross monthly income.
[LEFT] Maximum Finance Charges: $15 per $100
State Licensed Online Lenders: If you know of any, contact us.
Licensing Requirements: Online lenders must be licensed in Indiana.[/LEFT]
Iowa
Maximum Loan Amount: $500
[LEFT] Maximum Finance Charges: $16.67 per $100
State Licensed Online Lenders: If you know of any, contact us.
Licensing Requirements: Online lenders must be licensed in Iowa.[/LEFT]
Kansas
Maximum Loan Amount: $500
[LEFT] Maximum Finance Charges: $15 per $100
State Licensed Online Lenders: CashCentral.com, CheckCity.com, ChecknGo.com, PayDayOne.com
Licensing Requirements: Online lenders must be licensed in Kansas.[/LEFT]
Kentucky
Maximum Loan Amount: $500
[LEFT] Maximum Finance Charges: $17.65 per $100
State Licensed Online Lenders: If you know of any, contact us.
Licensing Requirements: Online lenders must be licensed in Kentucky.[/LEFT]
Louisiana
Maximum Loan Amount: $350
[LEFT] Maximum Finance Charges: $25 per $100
State Licensed Online Lenders: CashCentral.com, PayDayOne.com
Licensing Requirements: Online lenders must be licensed in Louisiana.[/LEFT]
Maine
Maximum Loan Amount: $300
[LEFT] Maximum Finance Charges: $15 for borrowed amounts of $100-$200, $25 for borrowed amounts of $250-$300.
State Licensed Online Lenders: PayDayOne.com
Licensing Requirements: Online lenders must be licensed and supervised in Maine.[/LEFT]
Maryland
Prohibited. [LEFT]Note: Lender may be regulated as a credit service organization (CSO). Generally, a CSO does not need to be licensed so there is no limit to the maximum loan or finance charge.[/LEFT]
Massachusetts
Prohibited.
Michigan
Maximum Loan Amount: $600
[LEFT] Maximum Finance Charges: $15 per $100 borrowed (plus any database verification fee)
State Licensed Online Lenders: ChecknGo.com
Licensing Requirements: Online lenders must be licensed in Michigan.[/LEFT]
Minnesota
Maximum Loan Amount: $350
[LEFT] Maximum Finance Charges: $15 per $100 borrowed
State Licensed Online Lenders: CashCentral.com
Licensing Requirements: Online lenders must be licensed in Minnesota.[/LEFT]
Mississippi
Maximum Loan Amount: $400
[LEFT] Maximum Finance Charges: $22 per $100 borrowed
State Licensed Online Lenders: PayDayOne.com
Licensing Requirements: Online lenders must be licensed in Mississippi.[/LEFT]
Missouri
Maximum Loan Amount: $500
[LEFT] Maximum Finance Charges: $75 per $100 borrowed
State Licensed Online Lenders: CashCentral.com, CheckCity.com, ChecknGo.com, PayDayOne.com, QLoot.com
Licensing Requirements: Online lenders must be licensed in Missouri.[/LEFT]
Montana
Maximum Loan Amount: $300
[LEFT] Maximum Finance Charges: $25 per $100 borrowed
State Licensed Online Lenders: CashCentral.com
Licensing Requirements: Online lenders must be licensed in Montana.[/LEFT]
Nebraska
Maximum Loan Amount: $500
[LEFT] Maximum Finance Charges: $17.65 per $100 borrowed
State Licensed Online Lenders: If you know of any, contact us.
Licensing Requirements: Online lenders must be licensed in Nebraska.[/LEFT]
Nevada
Maximum Loan Amount: 25% of borrower’s gross monthly income
[LEFT] Maximum Finance Charges: No Limit
State Licensed Online Lenders: CashCentral.com, CheckCity.com, ChecknGo.com, PayDayOne.com, QLoot.com
Licensing Requirements: Online lenders must be licensed in Nevada.[/LEFT]
New Hampshire
Prohibited. [LEFT]Note: Payday loans are technically legal but the extremely low rate cap (36% annual interest or $1.38 for 14-day $100 loan) would not even cover lender costs. As we discussed in our article Six Payday Loan Laws that Hurt Consumers, a rate cap that makes offering loans unprofitable becomes a de facto ban on payday loans. [/LEFT]
New Jersey
Prohibited.
New Mexico
Maximum Loan Amount: $2500
[LEFT] Maximum Finance Charges: $16 per $100 borrowed
State Licensed Online Lenders: CheckCity.com
Licensing Requirements: Online lenders must be licensed in New Mexico.[/LEFT]
New York
Prohibited.
North Carolina
Prohibited.
North Dakota
Maximum Loan Amount: $500
[LEFT] Maximum Finance Charges: $20 per $100 borrowed
State Licensed Online Lenders: CashCentral.com, CheckCity.com, ChecknGo.com
Licensing Requirements: Online lenders must be licensed in North Dakota.[/LEFT]
Ohio
Maximum Loan Amount: $500 (No Limit)
[LEFT] Maximum Finance Charges: $1.08 per $100 borrowed (“No Limit†for CSO – see below)
Legally Operating Online Lenders: ChecknGo.com, PayDayOne.com
Licensing Requirements: Online lenders must be licensed in Ohio.[/LEFT]
[LEFT]* State law imposes a rate cap of 28% APR ($1.08 for 14-day $100 loan) but a lender may be regulated as a credit service organization (CSO). Generally, a CSO does not need to be licensed so there is no limit to the maximum loan or finance charge.[/LEFT]
Oklahoma
Maximum Loan Amount: $500
[LEFT] Maximum Finance Charges: $15 per $100 borrowed
State Licensed Online Lenders: ChecknGo.com
Licensing Requirements: Online lenders must be licensed in Oklahoma.[/LEFT]
Oregon
Maximum Loan Amount: Not Specified
[LEFT] Maximum Finance Charges: $13 per $100 for 31-day loan (36% APR interest plus $10/$100 origination fee up to $30)
State Licensed Online Lenders: If you know of any, contact us.
Licensing Requirements: Online lenders must be licensed in Oregon.[/LEFT]
Pennsylvania
Prohibited.
Rhode Island
Maximum Loan Amount:$500 (No Limit)
[LEFT] Maximum Finance Charges: $10 per $100 borrowed (No Limit)
Legally Operating Online Lenders: CashCentral.com, PayDayOne.com
Licensing Requirements: Online lenders can be licensed in any state. Lenders would need to follow the laws of the state they are licensed out of, not the laws of Rhode Island, so there is no limit to the maximum loan or finance charge.[/LEFT]
South Carolina
Maximum Loan Amount: $300 (No Limit)
[LEFT] Maximum Finance Charges: $15 per $100 borrowed (No Limit)
Legally Operating Online Lenders: PayDayOne.com
Licensing Requirements: Online lenders must be licensed in South Carolina.[/LEFT]
[LEFT]Note: Transaction may be handled as a consumer installment loan, not a “payday loan†per se, so there is no limit to the maximum loan or finance charge.[/LEFT]
South Dakota
Maximum Loan Amount: $500
[LEFT] Maximum Finance Charges: No Limit
State Licensed Online Lenders: CashCentral.com, CheckCity.com, ChecknGo.com, PayDayOne.com, QLoot.com
Licensing Requirements: Online lenders must be licensed in South Dakota.[/LEFT]
Tennessee
Maximum Loan Amount: $500 (No Limit)
[LEFT] Maximum Finance Charges: $17.65 (No Limit)
State Licensed Online Lenders: PayDayOne.com
Licensing Requirements: Online lenders can be licensed in any state. Lenders would need to follow the laws of the state they are licensed out of, not the laws of Tennessee, so there is no limit to the maximum loan or finance charge.[/LEFT]
Texas
Maximum Loan Amount: No Limit
[LEFT] Maximum Finance Charges: $12 per $100 borrowed (No Limit)
Legally Operating Online Lenders: CashCentral.com, ChecknGo.com, PayDayOne.com
Licensing Requirements: Online lenders must be licensed in Texas.[/LEFT]
[LEFT]Note: Lender may be regulated as a credit service organization (CSO). Generally, a CSO does not need to be licensed so there is no limit to the maximum loan or finance charge.[/LEFT]
Utah
Maximum Loan Amount: No Limit
[LEFT] Maximum Finance Charges: No Limit
State Licensed Online Lenders: CashCentral.com, CashOne.com, CheckCity.com, ChecknGo.com, QLoot.com
Licensing Requirements: Online lenders must be licensed in Utah.[/LEFT]
Vermont
Prohibited.
Virginia
Maximum Loan Amount: $500
[LEFT] Maximum Finance Charges: $26.38 per $100 borrowed
State Licensed Online Lenders: CheckCity.com
Licensing Requirements: Online lenders must be licensed in Virginia.[/LEFT]
Washington
Maximum Loan Amount: Lesser of $700 or 30% of borrower’s gross monthly income.
[LEFT] Maximum Finance Charges: $15 per $100 borrowed
State Licensed Online Lenders: CashCentral.com, CheckCity.com
Licensing Requirements: Online lenders must be licensed in Washington.[/LEFT]
West Virginia
Prohibited.
Wisconsin
Maximum Loan Amount: No Limit
[LEFT] Maximum Finance Charges: $12 per $100 borrowed (No Limit)
Legally Operating Online Lenders: CashCentral.com, CheckCity.com, ChecknGo.com, QLoot.com
Licensing Requirements: Online lenders can be licensed in any state. Lenders would need to follow the laws of the state they are licensed out of, not the laws of Wisconsin, so there is no limit to the maximum loan or finance charge.[/LEFT]
[LEFT]Note: Transaction may be handled as a consumer installment loan, not a “payday loan†per se.[/LEFT]
Wyoming
Maximum Loan Amount: No Limit
[LEFT] Maximum Finance Charges: $30 per $100 borrowed
State Licensed Online Lenders: CashCentral.com, CheckCity.com, ChecknGo.com, PayDayOne.com
Licensing Requirements: Online lenders must be licensed in Wyoming.[/LEFT]
[LEFT][INDENT]
[/INDENT][/LEFT]
[LEFT]Notes:[/LEFT]
[LEFT]Most states require online lenders to be licensed in their state. Four states, however, allow lenders to be licensed in any state. In these four states, loan transactions would follow the laws of the state the lender is licensed out of, not the laws of state in which the borrower resides. An online lender based in a state with no finance charge limits could charge more than the maximum finance charge set by the borrower’s state law and still be operating legally.[/LEFT]
[LEFT]Thirteen states prohibit payday loans. Four states, however, allow payday lenders to operate as credit service organizations (CSO) or handle transactions as consumer installment loans. It’s possible for a state to prohibit “payday loans†but make de facto payday loans available through a CSO or other arrangement. It is also possible for a lender licensed as a CSO to charge more than the state maximum for payday loans.[/LEFT]
[LEFT]If you’d like to check an online lender’s licensing or transaction type (payday loan, CSO, etc.), visit the payday loan site. Reputable payday lenders will disclose complete licensing and transaction information. If a loan site does not list any information about state licensing or type of loan, it may be an offshore lender, a matching service “middleman†or a rogue website.[/LEFT]
[LEFT]Be sure to confirm the license with your local State Regulatory Agencies for Payday Loans. If you discover that a lender hasn’t renewed their license, has had it revoked or is no longer licensed for any reason, please contact us so we can update this page.[/LEFT]
[LEFT]Generally speaking, tribal lending entities are not regulated by state laws.[/LEFT]
[LEFT]Payday loan laws and licensing regulations change often. We cannot guarantee the accuracy or suitability of information.[/LEFT]
[LEFT]
[/LEFT]
Maximum Loan Amount: $500
Maximum Finance Charges: $17.50 per $100 borrowed
[LEFT] State Licensed Online Lenders: CashCentral.com, CheckCity.com, ChecknGo.com
Licensing Requirements: Online lenders must be licensed in Alabama.[/LEFT]
Alaska
Maximum Loan Amount: $500
[LEFT] Maximum Finance Charges: $20 per $100 borrowed
State Licensed Online Lenders: CashCentral.com, CheckCity.com
Licensing Requirements: Online lenders must be licensed in Alaska.[/LEFT]
Arizona
Prohibited.
Arkansas
Maximum Loan Amount: $400 (No Limit)
[LEFT] Maximum Finance Charges: $22.22 per $100 borrowed (No Limit)
Legally Operating Online Lenders: If you know of any, contact us.
Licensing Requirements: Online lenders can be licensed in any state. Lenders would need to follow the laws of the state they are licensed out of, not the laws of Arkansas, so there is no limit to the maximum loan or finance charge.[/LEFT]
California
Maximum Loan Amount: $300
[LEFT] Maximum Finance Charges: $17.65 per $100 borrowed
State Licensed Online Lenders: CashCentral.com, CheckCity.com, ChecknGo.com, PayDayOne.com
Licensing Requirements: Online lenders must be licensed in California.[/LEFT]
Colorado
Maximum Loan Amount: $500
[LEFT] Maximum Finance Charges: $20 per $100 borrowed (plus interest rate of 45% per annum)
State Licensed Online Lenders: CheckCity.com
Licensing Requirements: Online lenders must be licensed in Colorado.
Connecticut
[/LEFT]
Prohibited.
Delaware
Maximum Loan Amount: $500
[LEFT] Maximum Finance Charges: No Limit
State Licensed Online Lenders: CashCentral.com, ChecknGo.com, DelawareFastCash.com, PayDayOne.com, QLoot.com
Licensing Requirements: Online lenders must be licensed in Delaware.[/LEFT]
District of Columbia
Prohibited.
Florida
Maximum Loan Amount: $500 (No Limit)
[LEFT] Maximum Finance Charges: $15 per $100 borrowed plus verification fee if applicable (No Limit)
Legally Operating Online Lenders: ChecknGo.com
Licensing Requirements: Online lenders must be licensed in Florida.[/LEFT]
[LEFT]Note: Lender may be regulated as a credit service organization (CSO). Generally, a CSO does not need to be licensed so there is no limit to the maximum loan or finance charge.[/LEFT]
Georgia
Prohibited.
Hawaii
Maximum Loan Amount: $600
[LEFT] Maximum Finance Charges: $17.65 per $100 borrowed
Legally Operating Online Lenders: CashCentral.com, CheckCity.com, ChecknGo.com, PayDayOne.com
Licensing Requirements: Online lenders are licensed and regulated by the Hawaii Department of Consumer Affairs, Office of Consumer Protection.[/LEFT]
Idaho
Maximum Loan Amount: $1000
[LEFT] Maximum Finance Charges: No Limit
State Licensed Online Lenders: CashCentral.com, CheckCity.com, ChecknGo.com, PayDayOne.com, QLoot.com
Licensing Requirements: Online lenders must be licensed in Idaho.[/LEFT]
Illinois
Maximum Loan Amount: Lesser of $1000 or 25% of borrower’s gross monthly income.
[LEFT] Maximum Finance Charges: $15.50 per $100
State Licensed Online Lenders: CheckCity.com, ChecknGo.com, PayDayOne.com
Licensing Requirements: Online lenders must be licensed in Illinois.[/LEFT]
Indiana
Maximum Loan Amount: Lesser of $550 or 20% of borrower’s gross monthly income.
[LEFT] Maximum Finance Charges: $15 per $100
State Licensed Online Lenders: If you know of any, contact us.
Licensing Requirements: Online lenders must be licensed in Indiana.[/LEFT]
Iowa
Maximum Loan Amount: $500
[LEFT] Maximum Finance Charges: $16.67 per $100
State Licensed Online Lenders: If you know of any, contact us.
Licensing Requirements: Online lenders must be licensed in Iowa.[/LEFT]
Kansas
Maximum Loan Amount: $500
[LEFT] Maximum Finance Charges: $15 per $100
State Licensed Online Lenders: CashCentral.com, CheckCity.com, ChecknGo.com, PayDayOne.com
Licensing Requirements: Online lenders must be licensed in Kansas.[/LEFT]
Kentucky
Maximum Loan Amount: $500
[LEFT] Maximum Finance Charges: $17.65 per $100
State Licensed Online Lenders: If you know of any, contact us.
Licensing Requirements: Online lenders must be licensed in Kentucky.[/LEFT]
Louisiana
Maximum Loan Amount: $350
[LEFT] Maximum Finance Charges: $25 per $100
State Licensed Online Lenders: CashCentral.com, PayDayOne.com
Licensing Requirements: Online lenders must be licensed in Louisiana.[/LEFT]
Maine
Maximum Loan Amount: $300
[LEFT] Maximum Finance Charges: $15 for borrowed amounts of $100-$200, $25 for borrowed amounts of $250-$300.
State Licensed Online Lenders: PayDayOne.com
Licensing Requirements: Online lenders must be licensed and supervised in Maine.[/LEFT]
Maryland
Prohibited. [LEFT]Note: Lender may be regulated as a credit service organization (CSO). Generally, a CSO does not need to be licensed so there is no limit to the maximum loan or finance charge.[/LEFT]
Massachusetts
Prohibited.
Michigan
Maximum Loan Amount: $600
[LEFT] Maximum Finance Charges: $15 per $100 borrowed (plus any database verification fee)
State Licensed Online Lenders: ChecknGo.com
Licensing Requirements: Online lenders must be licensed in Michigan.[/LEFT]
Minnesota
Maximum Loan Amount: $350
[LEFT] Maximum Finance Charges: $15 per $100 borrowed
State Licensed Online Lenders: CashCentral.com
Licensing Requirements: Online lenders must be licensed in Minnesota.[/LEFT]
Mississippi
Maximum Loan Amount: $400
[LEFT] Maximum Finance Charges: $22 per $100 borrowed
State Licensed Online Lenders: PayDayOne.com
Licensing Requirements: Online lenders must be licensed in Mississippi.[/LEFT]
Missouri
Maximum Loan Amount: $500
[LEFT] Maximum Finance Charges: $75 per $100 borrowed
State Licensed Online Lenders: CashCentral.com, CheckCity.com, ChecknGo.com, PayDayOne.com, QLoot.com
Licensing Requirements: Online lenders must be licensed in Missouri.[/LEFT]
Montana
Maximum Loan Amount: $300
[LEFT] Maximum Finance Charges: $25 per $100 borrowed
State Licensed Online Lenders: CashCentral.com
Licensing Requirements: Online lenders must be licensed in Montana.[/LEFT]
Nebraska
Maximum Loan Amount: $500
[LEFT] Maximum Finance Charges: $17.65 per $100 borrowed
State Licensed Online Lenders: If you know of any, contact us.
Licensing Requirements: Online lenders must be licensed in Nebraska.[/LEFT]
Nevada
Maximum Loan Amount: 25% of borrower’s gross monthly income
[LEFT] Maximum Finance Charges: No Limit
State Licensed Online Lenders: CashCentral.com, CheckCity.com, ChecknGo.com, PayDayOne.com, QLoot.com
Licensing Requirements: Online lenders must be licensed in Nevada.[/LEFT]
New Hampshire
Prohibited. [LEFT]Note: Payday loans are technically legal but the extremely low rate cap (36% annual interest or $1.38 for 14-day $100 loan) would not even cover lender costs. As we discussed in our article Six Payday Loan Laws that Hurt Consumers, a rate cap that makes offering loans unprofitable becomes a de facto ban on payday loans. [/LEFT]
New Jersey
Prohibited.
New Mexico
Maximum Loan Amount: $2500
[LEFT] Maximum Finance Charges: $16 per $100 borrowed
State Licensed Online Lenders: CheckCity.com
Licensing Requirements: Online lenders must be licensed in New Mexico.[/LEFT]
New York
Prohibited.
North Carolina
Prohibited.
North Dakota
Maximum Loan Amount: $500
[LEFT] Maximum Finance Charges: $20 per $100 borrowed
State Licensed Online Lenders: CashCentral.com, CheckCity.com, ChecknGo.com
Licensing Requirements: Online lenders must be licensed in North Dakota.[/LEFT]
Ohio
Maximum Loan Amount: $500 (No Limit)
[LEFT] Maximum Finance Charges: $1.08 per $100 borrowed (“No Limit†for CSO – see below)
Legally Operating Online Lenders: ChecknGo.com, PayDayOne.com
Licensing Requirements: Online lenders must be licensed in Ohio.[/LEFT]
[LEFT]* State law imposes a rate cap of 28% APR ($1.08 for 14-day $100 loan) but a lender may be regulated as a credit service organization (CSO). Generally, a CSO does not need to be licensed so there is no limit to the maximum loan or finance charge.[/LEFT]
Oklahoma
Maximum Loan Amount: $500
[LEFT] Maximum Finance Charges: $15 per $100 borrowed
State Licensed Online Lenders: ChecknGo.com
Licensing Requirements: Online lenders must be licensed in Oklahoma.[/LEFT]
Oregon
Maximum Loan Amount: Not Specified
[LEFT] Maximum Finance Charges: $13 per $100 for 31-day loan (36% APR interest plus $10/$100 origination fee up to $30)
State Licensed Online Lenders: If you know of any, contact us.
Licensing Requirements: Online lenders must be licensed in Oregon.[/LEFT]
Pennsylvania
Prohibited.
Rhode Island
Maximum Loan Amount:$500 (No Limit)
[LEFT] Maximum Finance Charges: $10 per $100 borrowed (No Limit)
Legally Operating Online Lenders: CashCentral.com, PayDayOne.com
Licensing Requirements: Online lenders can be licensed in any state. Lenders would need to follow the laws of the state they are licensed out of, not the laws of Rhode Island, so there is no limit to the maximum loan or finance charge.[/LEFT]
South Carolina
Maximum Loan Amount: $300 (No Limit)
[LEFT] Maximum Finance Charges: $15 per $100 borrowed (No Limit)
Legally Operating Online Lenders: PayDayOne.com
Licensing Requirements: Online lenders must be licensed in South Carolina.[/LEFT]
[LEFT]Note: Transaction may be handled as a consumer installment loan, not a “payday loan†per se, so there is no limit to the maximum loan or finance charge.[/LEFT]
South Dakota
Maximum Loan Amount: $500
[LEFT] Maximum Finance Charges: No Limit
State Licensed Online Lenders: CashCentral.com, CheckCity.com, ChecknGo.com, PayDayOne.com, QLoot.com
Licensing Requirements: Online lenders must be licensed in South Dakota.[/LEFT]
Tennessee
Maximum Loan Amount: $500 (No Limit)
[LEFT] Maximum Finance Charges: $17.65 (No Limit)
State Licensed Online Lenders: PayDayOne.com
Licensing Requirements: Online lenders can be licensed in any state. Lenders would need to follow the laws of the state they are licensed out of, not the laws of Tennessee, so there is no limit to the maximum loan or finance charge.[/LEFT]
Texas
Maximum Loan Amount: No Limit
[LEFT] Maximum Finance Charges: $12 per $100 borrowed (No Limit)
Legally Operating Online Lenders: CashCentral.com, ChecknGo.com, PayDayOne.com
Licensing Requirements: Online lenders must be licensed in Texas.[/LEFT]
[LEFT]Note: Lender may be regulated as a credit service organization (CSO). Generally, a CSO does not need to be licensed so there is no limit to the maximum loan or finance charge.[/LEFT]
Utah
Maximum Loan Amount: No Limit
[LEFT] Maximum Finance Charges: No Limit
State Licensed Online Lenders: CashCentral.com, CashOne.com, CheckCity.com, ChecknGo.com, QLoot.com
Licensing Requirements: Online lenders must be licensed in Utah.[/LEFT]
Vermont
Prohibited.
Virginia
Maximum Loan Amount: $500
[LEFT] Maximum Finance Charges: $26.38 per $100 borrowed
State Licensed Online Lenders: CheckCity.com
Licensing Requirements: Online lenders must be licensed in Virginia.[/LEFT]
Washington
Maximum Loan Amount: Lesser of $700 or 30% of borrower’s gross monthly income.
[LEFT] Maximum Finance Charges: $15 per $100 borrowed
State Licensed Online Lenders: CashCentral.com, CheckCity.com
Licensing Requirements: Online lenders must be licensed in Washington.[/LEFT]
West Virginia
Prohibited.
Wisconsin
Maximum Loan Amount: No Limit
[LEFT] Maximum Finance Charges: $12 per $100 borrowed (No Limit)
Legally Operating Online Lenders: CashCentral.com, CheckCity.com, ChecknGo.com, QLoot.com
Licensing Requirements: Online lenders can be licensed in any state. Lenders would need to follow the laws of the state they are licensed out of, not the laws of Wisconsin, so there is no limit to the maximum loan or finance charge.[/LEFT]
[LEFT]Note: Transaction may be handled as a consumer installment loan, not a “payday loan†per se.[/LEFT]
Wyoming
Maximum Loan Amount: No Limit
[LEFT] Maximum Finance Charges: $30 per $100 borrowed
State Licensed Online Lenders: CashCentral.com, CheckCity.com, ChecknGo.com, PayDayOne.com
Licensing Requirements: Online lenders must be licensed in Wyoming.[/LEFT]
[LEFT][INDENT]
[/INDENT][/LEFT]
[LEFT]Notes:[/LEFT]
[LEFT]Most states require online lenders to be licensed in their state. Four states, however, allow lenders to be licensed in any state. In these four states, loan transactions would follow the laws of the state the lender is licensed out of, not the laws of state in which the borrower resides. An online lender based in a state with no finance charge limits could charge more than the maximum finance charge set by the borrower’s state law and still be operating legally.[/LEFT]
[LEFT]Thirteen states prohibit payday loans. Four states, however, allow payday lenders to operate as credit service organizations (CSO) or handle transactions as consumer installment loans. It’s possible for a state to prohibit “payday loans†but make de facto payday loans available through a CSO or other arrangement. It is also possible for a lender licensed as a CSO to charge more than the state maximum for payday loans.[/LEFT]
[LEFT]If you’d like to check an online lender’s licensing or transaction type (payday loan, CSO, etc.), visit the payday loan site. Reputable payday lenders will disclose complete licensing and transaction information. If a loan site does not list any information about state licensing or type of loan, it may be an offshore lender, a matching service “middleman†or a rogue website.[/LEFT]
[LEFT]Be sure to confirm the license with your local State Regulatory Agencies for Payday Loans. If you discover that a lender hasn’t renewed their license, has had it revoked or is no longer licensed for any reason, please contact us so we can update this page.[/LEFT]
[LEFT]Generally speaking, tribal lending entities are not regulated by state laws.[/LEFT]
[LEFT]Payday loan laws and licensing regulations change often. We cannot guarantee the accuracy or suitability of information.[/LEFT]
[LEFT]
[/LEFT]
Wisconsin Updates
Wisconsin now requires a license in the state to issue a payday loan.
From the Wisconsin DFI Website:
Payday Loan Licensing Rules changed in 2011:
License required. A person may not originate or service a payday loan involving a Wisconsin resident without first having obtained from the division a license under sub. (5) for each place of business at which the person originates or services payday loans involving Wisconsin residents. Such a license is required for, and this section applies to, all payday loans made to a Wisconsin resident, regardless of whether the loan is made by face-to-face contact, mail, telephone, Internet, or any other means.
Also:
If a person who is not licensed under this section makes a payday loan to a customer, the loan is void, the customer is not obligated to pay any amounts owed on the loan, and the customer may recover from the person all amounts the customer has paid to the person. An action to recover such amounts shall be commenced within one year after the date of the last scheduled payment on the loan or shall be barred.
