⚡ Regulations & LawsUpdated: September 2, 2026
50-State Payday Loan Regulations: Statutory Fee Caps ($15 per $100) & Prohibited States
Reviewed by Consumer Financial Protection & Small-Dollar Lending Editorial Board
Comprehensive legal map of short-term lending laws: states with 36% rate caps, states with $15-per-$100 fee structures, and states where payday lending is prohibited.
Short-term lending regulations vary dramatically across state lines, divided between strict rate cap jurisdictions, licensed fee-cap structures, and prohibited states.
1. State Regulatory Models Compared
| Regulatory Tier | Typical States | Maximum Fee / Rate Cap | Maximum Loan Amount |
|---|
| Fee-Capped States | California, Texas, Florida, Nevada, Ohio | $15 to $17.50 per $100 borrowed | $300 to $1,000 max |
| 36% APR Rate Cap States | Colorado, Illinois, New Mexico, Montana, South Dakota | 36.00% APR hard interest cap | Varies ($500 – $2,500) |
| Prohibited / Usury Ban States | New York, New Jersey, Pennsylvania, Massachusetts | Payday loans strictly illegal under state usury laws | $0.00 (Prohibited) |
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Consumer Financial Protection & Small-Dollar Lending Editorial Board
Our financial literacy specialists review short-term lending regulations, Truth in Lending Act disclosures, and credit union alternative products to protect consumer rights.
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