Payday Loan Laws by State
Quick Answer
Payday lending is legal and licensed in roughly 27 states, restricted or capped in about 12, and prohibited or effectively banned in around 11. Each state below is marked with a color-coded status, a short guideline, and a link to the official source.
Payday loan rules are set state by state, and they change often. This page summarizes the current legal status of payday lending in all 50 states, with a short, plain-language note for each state and a link to the official state regulator or statute we referenced. Use it as a starting point, not legal advice — laws vary by state and are updated over time. If you are buried in payday debt, payday loan consolidation may help regardless of your state’s rules, because we work directly with your lenders.
How to Read This Guide
- ✓ Permitted (Pro-Payday) — payday or deferred-deposit loans are legal and licensed in the state. (27 states)
- ⚠ Restricted — rate caps or reforms sharply limit or reshape high-cost payday lending. (12 states)
- ✗ Not Pro-Payday (Prohibited) — payday lending is banned or effectively blocked by usury caps. (11 states)
Payday Loan Status in All 50 States
✓ Alabama · Payday lending permitted
Payday lending is permitted and storefront lenders are common; among the highest payday-lender density in the U.S.
Alabama consolidation options | Source: www.banking.alabama.gov
✓ Alaska · Payday lending permitted
Payday (deferred deposit) lending is permitted with state licensing and limits on loan size and terms.
Alaska consolidation options | Source: www.commerce.alaska.gov
⚠ Arizona · Payday lending restricted
A payday-loan carve-out from the 36% usury cap expired in 2010; traditional payday storefront lending is no longer authorized, though other short-term and online options exist.
Arizona consolidation options | Source: dfi.az.gov
⚠ Arkansas · Payday lending restricted
Payday lending was effectively ended after state enforcement and a constitutional usury limit; storefront payday loans are not authorized.
Arkansas consolidation options | Source: securities.arkansas.gov
✓ California · Payday lending permitted
Payday (deferred deposit) lending is permitted under state licensing with caps on loan amount and fees.
California consolidation options | Source: dfpi.ca.gov
⚠ Colorado · Payday lending restricted
State reforms converted short-term payday products into longer-term installment loans and a voter-approved 36% APR cap reshaped the market.
Colorado consolidation options | Source: coag.gov
✗ Connecticut · Payday lending not permitted
A low usury cap makes high-cost payday lending effectively prohibited; payday storefronts do not operate.
✓ Delaware · Payday lending permitted
Payday lending is permitted with licensing and a limit on the number of loans a borrower can take per year.
Delaware consolidation options | Source: banking.delaware.gov
✓ Florida · Payday lending permitted
Payday (deferred presentment) lending is permitted under state license with a single-loan limit, a statewide transaction database, and a mandated grace period; a newer installment-style option also exists.
Florida consolidation options | Source: flofr.gov
✗ Georgia · Payday lending not permitted
Payday lending has long been prohibited and is treated as a criminal/racketeering matter under state law.
Georgia consolidation options | Source: dbf.georgia.gov
✓ Hawaii · Payday lending permitted
Deferred deposit / payday lending is permitted; recent reforms moved the market toward installment-style limits.
Hawaii consolidation options | Source: cca.hawaii.gov
✓ Idaho · Payday lending permitted
Payday lending is permitted with relatively few restrictions on fees.
⚠ Illinois · Payday lending restricted
A statewide 36% APR cap (Predatory Loan Prevention Act) sharply limited traditional payday lending; a real-time loan database applies.
✓ Indiana · Payday lending permitted
Payday lending is permitted with state-set fee tiers and a real-time verification database.
Indiana consolidation options | Source: www.in.gov
✓ Iowa · Payday lending permitted
Delayed deposit / payday lending is permitted with limits on amount and fees.
Iowa consolidation options | Source: idob.iowa.gov
✓ Kansas · Payday lending permitted
Payday lending is permitted under the state code with fee and term limits.
Kansas consolidation options | Source: osbckansas.org
✓ Kentucky · Payday lending permitted
Payday lending is permitted with per-loan limits and a statewide database; borrowers face caps on simultaneous loans.
Kentucky consolidation options | Source: kfi.ky.gov
✓ Louisiana · Payday lending permitted
Payday (deferred presentment) lending is permitted and storefronts are widespread.
Louisiana consolidation options | Source: www.ofi.louisiana.gov
⚠ Maine · Payday lending restricted
Supervised-lender rules and rate caps tightly limit high-cost payday lending.
Maine consolidation options | Source: www.maine.gov
✗ Maryland · Payday lending not permitted
A low usury cap makes payday lending effectively prohibited; payday storefronts do not operate.
Maryland consolidation options | Source: www.labor.maryland.gov
✗ Massachusetts · Payday lending not permitted
Small-loan rate caps make payday lending effectively prohibited.
✓ Michigan · Payday lending permitted
Deferred presentment (payday) lending is permitted with a statewide database and per-borrower limits.
✓ Minnesota · Payday lending permitted
Payday lending is permitted with state limits on fees and loan size.
Minnesota consolidation options | Source: mn.gov
✓ Mississippi · Payday lending permitted
Payday (delayed deposit) lending is permitted and lender density is among the highest in the nation.
Mississippi consolidation options | Source: dbcf.ms.gov
✓ Missouri · Payday lending permitted
Payday lending is permitted with relatively light restrictions and renewal rules.
Missouri consolidation options | Source: finance.mo.gov
✗ Montana · Payday lending not permitted
A voter-approved 36% APR cap effectively ended payday lending.
Montana consolidation options | Source: banking.mt.gov
⚠ Nebraska · Payday lending restricted
A voter-approved 36% APR cap (2020) sharply curtailed payday lending.
✓ Nevada · Payday lending permitted
Payday and high-interest lending is permitted with relatively few rate restrictions.
Nevada consolidation options | Source: fid.nv.gov
⚠ New Hampshire · Payday lending restricted
A 36% APR cap on payday loans effectively limits the traditional payday market.
✗ New Jersey · Payday lending not permitted
Strict criminal usury caps make payday lending effectively prohibited.
New Jersey consolidation options | Source: www.njconsumeraffairs.gov
⚠ New Mexico · Payday lending restricted
The legislature capped APRs and restricted short-term lending; traditional payday loans were curtailed by a 36% cap.
✗ New York · Payday lending not permitted
Criminal and civil usury caps make payday lending illegal; the state actively pursues out-of-state and online lenders.
New York consolidation options | Source: www.dfs.ny.gov
✗ North Carolina · Payday lending not permitted
Payday lending was ended after state enforcement; storefront payday loans are not authorized.
North Carolina consolidation options | Source: www.nccob.gov
✓ North Dakota · Payday lending permitted
Payday lending is permitted with fee and amount limits and a database requirement.
North Dakota consolidation options | Source: www.nd.gov
⚠ Ohio · Payday lending restricted
The Fairness in Lending Act (2018) capped fees and reshaped short-term lending after years of high-cost products.
Ohio consolidation options | Source: com.ohio.gov
✓ Oklahoma · Payday lending permitted
Payday and small-loan lending is permitted; the state moved toward small-installment products alongside payday loans.
Oklahoma consolidation options | Source: oklahoma.gov
⚠ Oregon · Payday lending restricted
Rate and fee caps plus minimum-term rules sharply limit payday lending.
Oregon consolidation options | Source: dfr.oregon.gov
✗ Pennsylvania · Payday lending not permitted
A low usury cap makes payday lending effectively prohibited; the state pursues evasive online lenders.
Pennsylvania consolidation options | Source: www.dobs.pa.gov
✓ Rhode Island · Payday lending permitted
Payday (deferred deposit) lending is permitted with a per-check fee limit.
Rhode Island consolidation options | Source: dbr.ri.gov
✓ South Carolina · Payday lending permitted
Payday lending is permitted with a statewide database and per-borrower limits.
South Carolina consolidation options | Source: consumer.sc.gov
⚠ South Dakota · Payday lending restricted
A voter-approved 36% APR cap (2016) effectively ended traditional payday lending.
South Dakota consolidation options | Source: dlr.sd.gov
✓ Tennessee · Payday lending permitted
Payday (deferred presentment) and flex loans are permitted and storefronts are common.
Tennessee consolidation options | Source: www.tn.gov
✓ Texas · Payday lending permitted
Payday and auto-title lending operates largely through a credit-services-organization model with relatively light state caps; some cities add local ordinances.
Texas consolidation options | Source: occc.texas.gov
✓ Utah · Payday lending permitted
Payday lending is permitted with relatively few rate restrictions but rules on rollovers and terms.
Utah consolidation options | Source: dfi.utah.gov
✗ Vermont · Payday lending not permitted
A low usury cap makes payday lending effectively prohibited.
Vermont consolidation options | Source: dfr.vermont.gov
⚠ Virginia · Payday lending restricted
The Fairness in Lending Act (2020) capped rates and reshaped short-term lending; a database applies.
Virginia consolidation options | Source: www.scc.virginia.gov
✓ Washington · Payday lending permitted
Payday lending is permitted but tightly limited by an annual loan cap per borrower and a statewide database.
Washington consolidation options | Source: dfi.wa.gov
✗ West Virginia · Payday lending not permitted
A low usury cap makes payday lending effectively prohibited.
✓ Wisconsin · Payday lending permitted
Payday lending is permitted with relatively few rate restrictions but limits on rollovers.
Wisconsin consolidation options | Source: dfi.wi.gov
✓ Wyoming · Payday lending permitted
Payday lending is permitted; the state historically allowed monthly fee-based pricing.
Wyoming consolidation options | Source: wyomingbankingdivision.wyo.gov
Important Disclaimer
This information is provided for general educational purposes and is not legal advice. Payday lending statutes, rate caps, and licensing rules change frequently, and enforcement varies. Always confirm the current rules with your state’s financial regulator (linked above) before acting.
Struggling With Payday Debt in Your State?
You can also compare our U.S. payday loan consolidation guide, review payday loan relief vs consolidation, and go through the questions to ask before enrolling if you want a broader explanation of how the process works across states.
Wherever you live, you may have options. We work directly with online, tribal, and storefront lenders to combine your payday balances into one manageable plan — with no upfront fees and no credit check needed. Not all consumers qualify, and results vary by situation. Call 877-785-7817 for a free, no-obligation quote, or see how it works.
Frequently Asked Questions
Which states allow payday loans?
Payday or deferred-deposit lending is currently permitted and licensed in roughly 27 states, including Texas, California, Florida, and Mississippi. Rules, fee caps, and database requirements vary by state.
Which states have banned payday loans?
About 11 states prohibit or effectively block payday lending through low usury caps, including New York, New Jersey, Georgia, Massachusetts, Pennsylvania, and Maryland.
Can I still get payday loan help if my state bans payday lending?
Yes. Many borrowers in restrictive states still owe balances to online or out-of-state lenders. Consolidation can help regardless of your state’s rules because the program works directly with your lenders.
Does a 36% APR cap mean payday loans are illegal?
Not exactly. A 36% APR cap usually makes traditional high-cost payday loans unprofitable, so lenders stop offering them. The product becomes effectively unavailable even when it is not formally a crime.
Where does this state information come from?
Each state entry links to the official source we referenced, typically the state’s financial regulator, banking department, or attorney general. Because laws change, always confirm current rules with that office.
Ready to Join Our Payday Loan Consolidation Program?
Now that you understand payday loan laws where you live, the next step is simple. Our payday loan consolidation program rolls your high-cost payday and tribal loans into one manageable payment, helping you stop the cycle of rollovers and automatic withdrawals. Joining is free to explore, and there is no obligation.
Want to learn more first? See how payday loan consolidation works, compare payday loan relief options, check the lenders we work with, or read our frequently asked questions. When you are ready, request your free quote or call 877-785-7817 to get started.