A Guide to Payday Loan Laws by State

Payday loan laws vary significantly from state to state. In some states, payday loans are heavily regulated, while in others, they are largely unregulated.

Arizona is one of the states with strict payday loan laws. Borrowers in Arizona can only take out payday loans up to $500, with a maximum interest rate of 36%. California, on the other hand, has a $300 limit on payday loans and a 36% interest rate cap.

Borrowers in some states may be exempt from certain payday loan regulations. For example, active military personnel are exempt from payday loan regulations in most states.

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In Michigan, payday loans are governed by the Deferred Presentment Service Transaction Act, which sets limits on the number of loans a customer can have at one time and the amount of service fees that can be charged.

Payday lenders in Michigan must verify a customer's eligibility and cannot have more than two payday loans with the same lender at a time.

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Customers in Michigan are entitled to receive loan proceeds in cash and must sign a written agreement that includes an itemization of fees and the equivalent annual percentage rate.

A customer can have no more than two payday loans at a time, and each loan is limited to $600, not including fees.

Here's a summary of the key facts about payday loan laws in Michigan:

In Washington state, payday loans are subject to different rules. You may only borrow a total of $700 or 30% of your gross monthly income, whichever is less.

Payday loan laws can be complex, but here are some key facts to keep in mind:

You may only borrow a total of $700 or 30% of your gross monthly income, whichever is less.

If you're struggling to repay your loan, you may request an installment plan with no additional fees. This can give you some breathing room, but be aware that if you currently have an installment plan, you may not receive another loan.

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Your information will be registered in a state-wide database, ensuring that all payday lenders have your most up-to-date loan information.

You may only take 8 payday loans per 12-month period, so be mindful of your borrowing limits.

Lenders may not harass or intimidate you when collecting a loan. If you are harassed, contact DFI and file a complaint.

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Internet lenders are a common way to access payday loans, but it's essential to know the rules that govern them. In Washington, internet payday lenders must be licensed by the Department of Financial Institutions (DFI) to operate.

If you're considering using an internet lender, make sure they're licensed by DFI to avoid dealing with unscrupulous businesses. This ensures you'll be protected by Washington's loan limits and terms.

Washington's strict regulations on internet lenders are in place to prevent predatory lending practices, so you can borrow money with confidence.

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In Washington State, the Washington State Department of Financial Institutions (DFI) licenses and regulates payday lenders. You can verify the license of a payday lender by calling 1-877-RING-DFI (746-4334) or checking online.

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The maximum loan amount in Washington State is $700 or 30% of your gross monthly income, whichever is less. This means you can borrow up to $700 or a percentage of your monthly income, whichever is smaller.

Maximum fees in Washington State are capped at 15% on the first $500 and 10% above $500. This helps keep the costs of borrowing reasonable.

As a Washington resident, you have the right to change your mind about a loan within one day. This is a great safety net in case you're not sure about a loan.

You also have the right to know all the costs involved in a loan, including the finance charge and annual percentage rate (APR). The APR is a key indicator of the loan's cost, and in Washington State, it can be as high as 391.07% for a 14-day, $500 payday loan.

Internet payday lenders that do business with Washington residents must be licensed by DFI and follow the state's loan limits and terms. Make sure to check if an internet lender is licensed before doing business with them.

Here are the key rights you have as a Washington resident:

In some states, lenders are required to verify a borrower's income before issuing a payday loan.

Colorado law prohibits lenders from issuing payday loans to borrowers who have outstanding loans or have been issued a payday loan in the past 30 days.

Many states impose a cap on the interest rates that lenders can charge for payday loans.

Arizona's payday loan law limits the maximum interest rate to 36% per year.

Some states require lenders to provide borrowers with a cooling-off period before issuing another loan.

Florida law requires lenders to wait at least 24 hours before issuing another payday loan to the same borrower.

Lenders in some states are required to disclose the total cost of the loan, including fees and interest, to the borrower.

In New Hampshire, lenders must disclose the total cost of the loan in writing.

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As a consumer, it's essential to know your rights when dealing with payday loans. In Washington State, you have the right to change your mind about a loan within one day.

You also have the right to know all of the costs involved, and a payday lender must disclose this information to you. This includes the finance charge and the annual percentage rate (APR), which can be as high as 391.07% for a 14-day, $500 loan.

A payday lender may not threaten criminal prosecution to collect a past due loan, so you don't have to worry about that. However, they may try to collect the debt, but they must be licensed with the DFI.

You have the right to a payment plan, which can help you manage your debt. Additionally, a payday lender may not allow you to use a new payday loan to pay off an existing payday loan by the same lender or an affiliate of the lender.

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