By My Payday Advance Consumer Underwriting & Financial Literacy Council
Comprehensive survey of state short-term credit statutes: 36% rate cap states, permitted loan terms, mandatory cooling-off periods, and rollover bans.
Payday lending is regulated primarily at the state level, resulting in widely divergent legal frameworks, interest rate ceilings, and licensing requirements across jurisdictions.
1. State Regulatory Categories
Regulatory Model
Statutory Framework
Sample States
Consumer Impact
Strict 36% Rate Cap
Small loan usury laws capping APR at 36%
NY, NJ, MA, PA, NC, GA, CT, MD
Payday storefronts prohibited; credit union/bank loans only
Permits $15–$20 fees per $100 borrowed (300%+ APR)
TX, CA, TN, NV, UT, FL, MO
Licensed storefront and online direct lending allowed
🛡️
My Payday Advance Consumer Underwriting & Financial Literacy Council
Our financial research team monitors Truth in Lending Act (TILA) compliance standards, CFPB small-dollar lending enforcement, state usury laws, and credit union PAL program benchmarks.
Need an Emergency Cash Advance?
Get connected with our verified network of direct lenders for instant pre-approvals up to $5,000.