Laws about Payday Loans Differ From State To State

Laws about payday loans differ from state to state since the regulatory laws fall under the jurisdiction of the state laws. Currently, only 37 states in the US allow for payday loans, and in all the other states, cash against payday lending is highly illegal or just not worth it for lenders to offer them because of the very low interest rate caps placed by the state laws.

In some of the states where payday lending is legal there are often a few stipulations that accompany payday loans. For example, some states set a maximum amount of payday loans a person can have at one time and restrict the number of payday loans a person can acquire in a calendar year. Also, some states have interest rate maximums on loans that borrowers have had to extend the repayment time on, making it easier for borrowers to repay the loans.