Lending laws by state
State law decides what a lender may charge you, whether payday and title loans are on offer at all, and how long a collector can sue over an old debt. Payday or similar high-cost short-term loans are legal in 30 states; the rest and D.C. ban them or cap rates too low for them to operate.
Map of payday loan rules
- Payday loans allowed
- Banned or capped out
All states at a glance
| State | Payday loans | Title loans | Rate limit on small loans | Time limit to sue | Wage garnishment |
|---|---|---|---|---|---|
| Alabama | Allowed | Allowed | Small Loan Act: 3% a month on first $200, 2% to $1,500; title pawns 25% a month |
6 yrs written 3 yrs card |
Consumer debt: lesser of 25% of disposable pay or the amount above $217.50 a week |
| Alaska | Allowed | Not available | Small Loans Act: 3% a month up to $850, 2% to $10,000 (loans up to $25,000) |
3 yrs written 3 yrs card |
Exempt: $473 a week or 75% of disposable pay, whichever is more ($743 for sole earners) |
| Arizona | Not available | Allowed | Consumer lenders: 36% on first $3,000, 24% above; title loans 10%–17% a month |
6 yrs written 6 yrs card |
Consumer debt: lesser of 10% of disposable pay or the amount above 60× minimum wage |
| Arkansas | Not available | Not available | 17% a year on loans not made by banks or government (Amendment 89) |
5 yrs written 5 yrs card |
Federal 25% limit; first $25 a week of net wages always exempt |
| California | Allowed | Allowed | 36% plus federal funds rate on $2,500–$9,999 loans; lower tiered caps under $2,500 |
4 yrs written 4 yrs card |
Lesser of 20% of disposable pay or 40% of the amount above 48× state minimum wage |
| Colorado | Not available | Not available | Supervised loans: 36% to $1,000, 21% to $3,000, 15% above, or 21% flat |
6 yrs written 6 yrs card |
Lesser of 20% of disposable pay or the amount above 40× minimum wage |
| Connecticut | Not available | Not available | 36% APR under $5,000; 25% from $5,000 to $50,000; all finance charges counted |
6 yrs written 6 yrs card |
Lesser of 25% of disposable pay or the amount above 40× the higher minimum wage |
| Delaware | Allowed | Allowed | No general cap: licensed lenders may charge the rate set in the loan agreement |
3 yrs written 3 yrs card |
Up to 15% of wages (85% exempt); one wage attachment at a time |
| Florida | Allowed | Allowed | Consumer finance: 36% a year on the first $10,000; title loans 30% on the first $2,000 |
5 yrs written 5 yrs card |
Head of family: exempt up to $750/week; others follow the federal limit |
| Georgia | Not available | Allowed | Loans of $3,000 or less: 10% add-on interest plus capped loan and monthly fees |
6 yrs written 6 yrs card |
Lesser of 25% of disposable pay or the amount above $217.50 a week |
| Hawaii | Allowed | Not available | 36% interest plus a monthly fee; total charges capped at 50% of principal |
6 yrs written 6 yrs card |
5% of first $100/month, 10% of next $100, 20% above $200 |
| Idaho | Allowed | Allowed | No cap: licensed lenders may charge the rate agreed in the contract |
5 yrs written 5 yrs card |
Lesser of 25% of disposable pay or the amount above 30× federal minimum wage |
| Illinois | Not available | Not available | 36% APR, fees included, for non-bank lenders (Predatory Loan Prevention Act) |
10 yrs written 5 yrs card |
Lesser of 15% of gross pay or the amount above 45× state minimum wage ($675 a week) |
| Indiana | Allowed | Not available | Supervised loans: 36%/21%/15% tiers or 25% overall, plus a capped prepaid charge |
6 yrs written 6 yrs card |
Lesser of 25% of disposable pay or the amount above 30× federal minimum wage |
| Iowa | Allowed | Not available | Regulated loans: 3% a month (36% a year) since July 1, 2026; title loans 21% |
10 yrs written 5 yrs card |
Federal 25% limit, plus a yearly cap per creditor from $250 to 10% of expected earnings |
| Kansas | Allowed | Allowed | 36% a year on closed-end consumer loans; open-end credit at any agreed rate |
5 yrs written 3 yrs card |
Federal limit: 25% of disposable pay or amount above 30× federal minimum wage |
| Kentucky | Allowed | Not available | Consumer loan companies: 3% a month up to $5,000, less on larger loans |
10 yrs written 5 yrs card |
Federal limit: 25% of disposable pay or amount above 30× federal minimum wage |
| Louisiana | Allowed | Not available | Consumer loans: 36% a year on first $1,400, stepping down to 21% over $7,000 |
10 yrs written 3 yrs card |
75% of weekly disposable pay exempt, never less than 30× federal minimum wage |
| Maine | Not available | Not available | 30% a year up to $2,000, 24% to $4,000, 18% above (supervised lenders) |
6 yrs written 6 yrs card |
Up to 25% of disposable pay; amount up to 40× the higher minimum wage exempt |
| Maryland | Not available | Not available | 2.75% a month (33%) on first $1,000 of loans up to $2,000; 24% above |
3 yrs written 3 yrs card |
Exempts the greater of 75% of disposable wages or 30× state minimum wage per week |
| Massachusetts | Not available | Not available | 23% a year plus $20 fee on loans of $6,000 or less; 20% criminal usury limit otherwise |
6 yrs written 6 yrs card |
Exempts the greater of 85% of gross wages or 50× the higher minimum wage per week |
| Michigan | Allowed | Not available | 25% a year for regulated lenders, plus a processing fee of up to 5% |
6 yrs written 6 yrs card |
Federal limit: lesser of 25% of disposable pay or amount above 30× federal minimum wage |
| Minnesota | Allowed | Allowed | 50% all-in APR on loans up to $1,300; 21.75% or tiered 33%/19% on larger loans |
6 yrs written 6 yrs card |
10%–25% of disposable pay by income; only earnings above 40× minimum wage |
| Mississippi | Allowed | Allowed | No APR cap: payday $21.95 per $100; title pledge and CAA loans up to 25% a month |
3 yrs written 3 yrs card |
Wages exempt 30 days after service; then lesser of 25% or above 30× federal minimum wage |
| Missouri | Allowed | Allowed | No fixed rate cap; payday total cost limited to 75% of the loan amount |
10 yrs written 5 yrs card |
Lesser of 25% or above 30× federal minimum wage; 10% for a Missouri head of family |
| Montana | Not available | Not available | 36% a year for consumer loan and deferred deposit licensees |
6 yrs written 5 yrs card |
Federal limit: lesser of 25% of disposable pay or amount above 30× federal minimum wage |
| Nebraska | Not available | Not available | 36% APR on delayed deposit; installment loans 24% on first $1,000, 21% above |
5 yrs written 4 yrs card |
Lesser of 25% or above 30× federal minimum wage; 15% for a head of family |
| Nevada | Allowed | Allowed | No interest cap; limits on loan size, term and rollovers instead |
6 yrs written 4 yrs card |
18% of disposable pay if gross weekly pay is $770 or less, else 25%; above 50× min. wage |
| New Hampshire | Not available | Allowed | 36% APR on small loans up to $10,000; title loans up to 25% a month |
3 yrs written 3 yrs card |
Only after a judgment; 50× federal minimum wage ($362.50) a week exempt |
| New Jersey | Not available | Not available | 30% a year criminal usury cap; licensed consumer lenders lend up to $50,000 |
6 yrs written 6 yrs card |
Usually up to 10% of gross pay; more only if income tops 250% of poverty |
| New Mexico | Not available | Not available | 36% APR, fees included, on licensed loans of $10,000 or less |
6 yrs written 4 yrs card |
Exempt: greater of 75% of pay or 40× the highest applicable minimum wage a week |
| New York | Not available | Not available | 16% civil usury cap; licensed lenders may exceed it but not the 25% criminal cap |
6 yrs written 3 yrs card |
10% of gross pay, max 25% of disposable; low earners and medical debt exempt |
| North Carolina | Not available | Not available | Licensed lenders: 33% to $4,000, 24% to $8,000, 18% above (loans up to $12,000) |
3 yrs written 3 yrs card |
Generally not allowed for consumer debt; support, taxes and some government debts excepted |
| North Dakota | Allowed | Not available | 36% a year for licensed money brokers; payday fees up to 20% of the amount |
6 yrs written 6 yrs card |
Lesser of 25% or pay above 40× federal minimum wage; $20 a week less per dependent |
| Ohio | Allowed | Not available | Short-term loans: 28% plus fees; installment loans: 25% a year plus fees |
6 yrs written 6 yrs card |
Federal floor: lesser of 25% or pay above 30× federal minimum wage ($217.50/week) |
| Oklahoma | Allowed | Not available | Small loans 17%/month; supervised lenders 32% + fed funds rate (tiered) |
5 yrs written 5 yrs card |
75% of wages earned in last 90 days exempt; hardship claim can protect more |
| Oregon | Allowed | Allowed | 36% for payday, title and consumer finance loans, plus one $30-max fee on payday/title |
6 yrs written 6 yrs card |
At least 75% of disposable earnings exempt, plus a minimum per pay period |
| Pennsylvania | Not available | Not available | Usury limit unless licensed; CDCA lenders follow statutory rate limits far below payday |
4 yrs written 4 yrs card |
Wages exempt for consumer debt (support, rent, state student loans excepted) |
| Rhode Island | Allowed | Not available | Small loans to $5,000: 3%/month up to $300, 2.5% to $800, 2% above |
10 yrs written 10 yrs card |
Federal limit (25%) applies; public-assistance recipients' wages fully exempt for 1 year |
| South Carolina | Allowed | Allowed | Loans over $600: rate the lender files and posts; $600 or less: statutory schedule |
3 yrs written 3 yrs card |
Not allowed for consumer credit debts (S.C. Code 37-5-104) |
| South Dakota | Not available | Not available | 36% a year, all finance charges included, for licensed money lenders |
6 yrs written 6 yrs card |
Lesser of 20% of disposable pay or excess over 40× min wage; less $25/week per dependent |
| Tennessee | Allowed | Allowed | Title pledge 2%/month + 20% fee; flex loans 24% + 0.7%/day fee (up to $4,000) |
6 yrs written 6 yrs card |
Federal limit: 25% of disposable pay; extra $2.50/week per dependent child under 16 |
| Texas | Allowed | Allowed | Tiered caps for licensed lenders; CAB payday and title fees have no state cap |
4 yrs written 4 yrs card |
Not allowed for consumer debt (child support and federal debts excepted) |
| Utah | Allowed | Allowed | No general cap: parties may agree to any rate; unconscionability rules apply |
6 yrs written 6 yrs card |
Lesser of 25% of disposable earnings or amount above 30x federal minimum wage |
| Vermont | Not available | Not available | Installment loans: 24% on first $1,000 and 12% above, or 18% APR overall if higher |
6 yrs written 6 yrs card |
Credit debts: greater of 85% of weekly disposable pay or 40x federal min. wage exempt |
| Virginia | Allowed | Allowed | 36% simple interest on short-term, title and consumer finance loans, plus limited fees |
5 yrs written 3 yrs card |
Lesser of 25% of disposable pay or amount above 40x the higher federal/state min. wage |
| Washington | Allowed | Not available | Consumer Loan Act: 25% simple interest a year plus limited origination fee |
6 yrs written 6 yrs card |
Greater of 80% of disposable earnings or 35x state minimum wage exempt per week |
| Washington, D.C. | Not available | Not available | 24% a year on most consumer loans; some loans over $2,500 may carry agreed rates |
3 yrs written 3 yrs card |
25% of weekly disposable wages above 40x the D.C. minimum wage |
| West Virginia | Not available | Not available | 31% up to $3,500 (unsecured), 27% to $15,000, 18% above, for licensed lenders |
10 yrs written 5 yrs card |
Lesser of 20% of disposable earnings or amount above 50x federal minimum wage |
| Wisconsin | Allowed | Allowed | License required above 18%; no cap on payday or title loan interest before maturity |
6 yrs written 6 yrs card |
Up to 20% of disposable earnings; fully exempt if household income is below poverty line |
| Wyoming | Allowed | Not available | 36% a year on first $1,000 and 21% above for consumer loans; payday fees capped separately |
10 yrs written 8 yrs card |
Lesser of 25% of disposable earnings or amount above 30x federal minimum wage |
Short summaries of state law; each state page has the detail and the official sources. “Time limit to sue” is the statute of limitations for a written contract and for credit card debt. Not legal advice: check with your state regulator before relying on a limit.