Below is the current list (updated as of September 2011) of these 17 states and one district, with details of how each is going about to prevent payday loans:
List 1 – States that prohibit payday lending practices
- Georgia – George explicitly prohibits such loans as a violation the states racketeering laws
- New York – prohibited according to their criminal usury statutes
- New Jersey – prohibited according to their criminal usury statutes
- Arkansas – Originally had ‘Check Cashers Act’ which allowed payday loans, but Supreme court struck law down as a violation of State’s Usury cap; Law later repealed in 2011
- Arizona – Caps the rates that can be charged on loans at 36%/year plus 5% fee
- Connecticut – Cap at 30.03% APR or $17 per $100 borrowed – http://www.ct.gov/dob/site/default.asp
- Maryland – Monthly cap of 2.75%, 33% per year: http://www.dllr.state.md.us/finance/
- Massachusets – Cap at 23% plus fee of $20 at initiation: click here for regulator site
- North Carolina – Loan rate capped at 36% per year: http://www.ncdoj.com/
- Pennsylvania – cap at 24% per year or $9.50 per $100 per year: click here
- Vermont – capped at 18% per year: http://www.bishca.state.vt.us/banking/banking-division
States that allow payday loans, but have specific cap’s that generally prevent such loans from being offered:
- West Virginia – cap at 31% per year for a loan that is $2000 or less: http://www.wvago.us/
- District of Columbia – cap at 24% per year: http://disb.dc.gov/disr/site/default.asp
- Main – max 30% per year on loans up to $2,000; or $5 fee for up to $75 loan; $15 for amounts between $75 and $250; $25 for amounts greater than $250: click here
- Oregon – One (1) 31 day loan allowed, max of 36% interest and $10 fee/$100 up to a max of $30. APR = 156%: http://www.oregondfcs.org/
- New Hampshire – Max $500 loan amount, 36% Annual rate: http://www.nh.gov/banking/
- Ohio – $500 loan amount, 31 day maximum, 28% max annual interest rate: http://www.com.ohio.gov/fiin/
- Montana – $300 max loan amount, 36% max APR: http://www.banking.mt.gov/default.mcpx
The question that needs to be asked is: how have these laws affected consumers ability to borrow in each of these states?