Payday Cash Advance Loans and State Laws

Brent Barnhart

Payday Cash Advance Loans and State Laws

When looking into acquiring a payday cash advance, it’s important to be familiar with your state legislation concerning the companies that lend them. This is both to protect you from fraud and make sure that you’re borrowing from a legitimate institution. The duration of the loan, minimum/maximum amounts, and APR are all usually established by the state. Additionally, different loaners will also have different policies. Research is always key when looking into a loan, whether on the state or local level.

Familiarize yourself with your state laws for cash advance loans such as the following:

Alabama – Payday loan amount cannot be more than $500; meanwhile the APR cannot be higher than 17.5% of the loan itself.

Arkansas – Payday loan amount cannot be more than $400.

California – Payday loan amount cannot be more than $300, meanwhile the fee for a deposit transaction cannot be higher than 15% of the face amount of the check.

Florida – Payday loan amount cannot be more than $500.

Georgia – Payday loan lenders are prohibited.

Hawaii – Payday loan amount cannot be more than $600, meanwhile the fee for a deferred deposit cannot be higher than 15% of the face amount of the check.

Idaho – Payday loan amount cannot be more than $1,000.

Illinois – Payday loan amount cannot be more than $1,000 or 25% of the borrower’s monthly income. Payday lenders cannot charge more than $15.50 per $100 loaned over the loan’s term.

Maine – Payday loans have no maximum amount, meanwhile there are no APR restrictions.

Nevada – Payday loan amount cannot exceed 25% of borrower’s gross income.

Additionally, there are cash advance state laws concerning the minimum and maximum of the loan term:

Arizona – Payday loans have a maximum term of five days.

Colorado – Payday loans have a maximum term that cannot be more than 40 days.

Florida – Payday loan terms must be between seven and 31 days.

Hawaii – Payday loans have a maximum term that doesn’t exceed 32 days.

Louisiana – Payday loans have a maximum term that doesn’t exceed 60 days.

Michigan – Payday loans must have a term less than 30 days.

New Mexico – Payday loans have no minimum or maximum term requirements.

Washington – Payday loans have a maximum term that cannot be more than 45 days.

Becoming educated about laws and regulations is essential when looking into payday cash advance loans. By being familiar with such rules you can prevent potential fraud and acquire a loan that works for you.