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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
Became illegal on July 1, 2010
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.
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).
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.
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.
Became illegal on July 2009
The Maryland Consumer Debt Collection Act protects various forms of consumer lending and stopped payday lending in the state.
In August 2009, the Division of Banks ordered internet payday lenders to cease activity in Massachusetts.
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.
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.
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.
$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.
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.
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.
Became illegal in 2008
Enforced under the Payday Loan Consumer Protection Amendment Act, which went into effect Jan. 9, 2008.