A cash advance lender in Louisiana must be licensed. The applicable law is the Louisiana Deferred Presentment and Small Loan Act, which authorizes the legislature to regulate excessive fees and place limitations on cash advance companies. Under Louisiana law, a payday loan business faced with an unpaid loan by the due date can charge a fee of thirty-six percent. It is prohibited from attaching property for collection purposes. Furthermore, the Act bars check cash advance creditors from proceeding criminally against borrowers who offer to pay a portion of the loan ($50 or more).
A borrower can obtain up to $350 in payday loan funds.
The maximum loan term is 30 days.
Borrowers cannot rollover or extend a cash advance loan. However, a consumer may offer to pay 25% of the loan amount plus charges and enter into a new loan with the payday loan company.
A cash advance business may not charge more than 16.75% of the issued check's amount. Under Louisiana law, a payday loan creditor may only charge fees set forth in the loan agreement. The finance fee for a two-week payday loan in the amount of $100 is $25.
The APR for a two-week cash advance loan valued at $100 is 650%.