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Where Are Payday Loans Banned

Where are Payday Loans Banned?



Presented by loans.org



STATE PAYDAY LENDING LAWS



Payday lending laws verified on March 21, 2013.



BANNED STATES AND RULES



ARIZONA

Became illegal on July 1, 2010

47 SHUTDOWN

One of the largest payday lending companies in the state was Advance American, with 47 loan centers across the state before payday loans became illegal.



ARKANSAS

Became illegal in late 2008

The last store to shut down, operated by First American Cash Advance, was on July 31, 2009.

Anti-payday movement was headed by the Arkansans Against Abusive Payday Lending (AAAPL).



CONNECTICUT

12% PROHIBITED

In a 1949 section of the Banking Laws of Connecticut, Chapter 37-4, usury charges about 12 percent are prohibited for loans. In addition, section 36a-556 of the state law regulates small loan lenders.



GEORGIA

Became illegal in May 2004

The Georgia Industrial Loan Act [GILA] regulates the small loan industry and inhibited payday lenders from operating in the state.



MARYLAND

Became illegal on July 2009

The Maryland Consumer Debt Collection Act protects various forms of consumer lending and stopped payday lending in the state.



MASSACHUSETTS

In August 2009, the Division of Banks ordered internet payday lenders to cease activity in Massachusetts.



NEW JERSEY

100 YEARS

Consumer Lending and Licensed Lenders Act of 1996 is the current law. It was updated in 2009. The state has laws against usury charges that date back over 100 years.



NEW YORK

Illegal due to the state's 1976 law which caps interest rates at 16 percent. Considered one of the toughest states on payday loans. Any non-bank lender that charges more that 16 percent is subject to civil prosecution. Charging over 25 percent interest could lead to a first-degree criminal usury charge, which is a Class C felony that carries a maximum sentence of 15 years.



NORTH CAROLINA

Became illegal in 2001

SENATE BILL 89

Senate Bill 89, which was files on February 13, 2013 by North Carolina Senator Jerry Tillman (R-Randolph), is working to make payday loans legal once again.



PENNSYLVANIA

$25,000 CONSUMER LOAN LIMITATION

The state does not have one specific law against payday loans. The Consumer Discount Company Act sets limitations on consumer loans under $25,000.



VERMONT

Usury charges were prohibited in a 1980 statute, 9VSA-41A, which went into effect in 1980.

A new law passed on May 18, 2012; 9VSA-2481 9 V.S.A. 2481w. Unlicensed loan transactions, a part of the Consumer Protection Act, made it illegal for unlicensed lenders to operate in the state. If lenders knowingly violate this rule, they are legally liable and borrowers do not have to repay the debts.



WEST VIRGINIA

State codes 47-6-6. 47-6-5 and 46A-4-107 all limit interest rates and unfair charges, which make payday loans unprofitable in the state.



WASHINGTON D.C.

Became illegal in 2008

Enforced under the Payday Loan Consumer Protection Amendment Act, which went into effect Jan. 9, 2008.

Where Are Payday Loans Banned

shared by aritbenie on Apr 19, 2013 in Business

Where Are Payday Loans Banned

shared by aritbenie on Apr 19, 2013 in Business

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Currently, 12 states have laws that either ban payday loans or have strict lending laws which make them unprofitable in the state. Loans.org compiled a United States map to show the geographical regio...
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