Payday lending legality and number of rollovers allowed

The article argues that payday loan rollovers lead low income individuals into a debt-cycle where they will need to borrow additional funds to pay the fees associated with the debt rollover. Of the states that allow payday lending, 22 states do not allow borrowers to rollover their debt and only three states allow unlimited rollovers. States that allow unlimited rollovers leave the number of rollovers allowed up to the individual businesses.

State Payday Lending Legality Number of Rollovers Allowed
Alabama Legal 1
Alaska Legal 2
Arizona Prohibited Prohibited
Arkansas Prohibited Prohibited
California Legal 0
Colorado Legal 1
Connecticut Prohibited Prohibited
Delaware Legal 4
Florida Legal 0
Georgia Prohibited Prohibited
Hawaii Legal (Applies to check cashers only) 0
Idaho Legal 3
Illinois Legal 0
Indiana Legal 0
Iowa Legal 0
Kansas Legal Not specified
Kentucky Legal (Applies to check cashers only) 0
Louisiana Legal 0
Maine Permitted for supervised lenders only Prohibited
Maryland Prohibited Prohibited
Massachusetts Prohibited Prohibited
Michigan Legal 0
Minnesota Legal 0
Mississippi Legal 0
Missouri Legal 6 (borrower must reduce
principal amount of loan
by 5% or more upon each renewal)
Montana Legal (at a low cost) 0
Nebraska Legal 0
Nevada Legal Not Specified (Lenders cannot extend
payment period beyond 60 days after
expiration of initial loan period)
New Hampshire Legal (at a low cost) 0
New Jersey Prohibited Prohibited
New Mexico Legal 0
New York Prohibited Prohibited
North Carolina Prohibited Prohibited
North Dakota Legal 1
Ohio Legal (at a low cost) 0
Oklahoma Legal 0
Oregon Legal 2
Pennsylvania Prohibited Prohibited
Rhode Island Legal 1
South Carolina Legal 0
South Dakota Legal 4
Tennessee Legal 0
Texas Legal 0
Utah Legal (Applies to check cashers only) Not Specified (cannot extend
or renew loan more than
10 weeks from original loan date)
Vermont Prohibited Prohibited
Virginia Legal 0
Washington Legal (Lender must have a small loan
endorsement to their check casher
license in order to make payday loans)
Washington, DC Legal 0
West Virginia Prohibited Prohibited
Wisconsin Legal 1
Wyoming Legal 0