This information I found while researching payday loan laws

This report is from 1998 but has some very helpful information about the industryy and the laws in different states I will paste one of the many charts shown in this report lot of reading but it shows that most of these companies have no legal leg to stand on. You almost whish that if you did borrow money from them that you don't pay one single cent back. Most of their tactics and policies are very illegal

Table One



States With Specific Payday Loan Law/Regulations


State Maximum Term/Amt. Maximum Fee%*/$ Effective apr 7 day/14 day TILA Disclosure Req. Rollover/Refi. Prohibited Max. Loan At 1 time # / $
CA 30/$300 15% 782%/391% N N 1
CO /$500 <25% or 1250%/625% Y Y 2
DC 31/00 10% +fee Up to 782%/391% N N No Limit
FLcc >10% or $5 521%/261% N N No Limit
IO /$500 $15 per $100 $10 per next $100 782%/391% N Y 2
KS 30/$780 scale of fees$ 782%/391% Y Y No Limit
KY 60/$500 $15 per $100 For 14 days 782%/391% Y N 2
LA 30/$500 scale of fees$$ 521%/261% N Y No Limit
MN 30/$350 scale of fees$$$ 782%/391% N Y No Limit
MS 30/$400 18% 938%/469% N N No Limit
MO 10 mon/$500 $15/$100 782%/391% N N No Limit
NE 31/$500 $15/$100 782%/391% N N 2
NV To be set by regulation N N No Limit
NC 31/$300 15% 782%/391% N Y No Limit
OH 6 mon/$500 5%/mon. + 782%/391% N Y No Limit
OK 30/$101 20% 1042%/521% Y N $100
SC 31/$300 15% 782%/391% Y Y No Limit
TN 31/$500 15% or $30 782%/391% Y Y 3
WA 31/$500 15% + 782%/391% N Y No Limit
WY 30/ $30 or 20% 1042%/521% Y Y No Limit

* % of face amount of check
cc Applies to check cashers only
$ $5.50 for loans $0 to $50, 10% of loans + $5 for $50 to $100, 7% + $5 for $100 to $250, 6% +$5 for $250 to $300.
$$ $5 for loans $0 to $99, $10 for loans $100-$200, $15 for loans $201-$500.
$$$ $5.50 for loans $0 - $50, 10% + $5 loans $50 - $100, 7% + $5 loans $100 - $250, 6% + $5 for loans $250 - $350.

Nineteen states and the United States Virgin Islands do not permit payday loans due to small loan interest rate caps and by specific prohibitions against payday lending by check cashers. States have enforced this ban with varying degrees of enthusiasm. The Attorneys General in Virginia, West Virginia, Pennsylvania, Michigan, and Maryland have brought cases against payday lenders as unlicensed small loan companies. Georgia's Industrial Loan Commissioner ruled in 1998 that payday lending violated the Georgia Industrial Loan Act. Alabama's Department of Banking issued 150 cease and desist orders in mid-1998, charging payday lenders with violating interest rate caps. A consent agreement negotiated between the Alabama Check Cashers Association and the Department of Banking, however, permits payday lending to continue in Alabama under restrictions until the case is heard or the legislature adopts legislation. (See Appendix B).

Table Two

States That Prohibit Payday Loans Through Small Loan Law and Check Casher Law


State Cap Small Loan Rate Check Casher Law Prohibits
Alabama 36%
Alaska 36%
Arizona 36%
Arkansas 17%
Connecticut 28.52% Yes
Georgia 57.68% Yes
Hawaii 24%
Maine 30% Yes
Maryland 33%
Massachusetts 39.86% Yes
Michigan 25%
New Hampshire 24%
Pennsylvania 23.57% Yes
Puerto Rico 25%
Rhode Island 36%
Texas 31.65%
Vermont 24%
Virginia 36% Yes
Virgin Islands 26%
West Virginia 31% Yes

Other states permit payday lending due to weaknesses in state laws that govern small loan companies or due to the lack of a usury cap. Twelve states do not cap interest rates for small loan companies, permitting payday lenders to get licenses and charge any rate they choose. Indiana permits payday lending due to its minimum $33 finance charge for consumer loans. Three of these states (Delaware, New Jersey, and New York) only prohibit check cashers from making payday loans.

Table Three

States that Permit Payday Loans Through Small Loan Act Provisions


State Small Loan Act APR on $200 Loan Permitted for Check Cashers
Delaware No Cap No
Idaho No Cap Yes
Illinois No Cap Yes
Indiana $33 min. finance charge/36% cap Yes
Montana No Cap Yes
New Jersey No Cap No
New Mexico No Cap Yes
New York No Cap No
North Dakota No Cap Yes
Oregon No Cap Yes
South Dakota No Cap Yes
Utah No Cap Yes
Wisconsin No Cap Yes
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