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) |
0 |
Washington, DC | Legal | 0 |
West Virginia | Prohibited | Prohibited |
Wisconsin | Legal | 1 |
Wyoming | Legal | 0 |
Reference: https://en.wikipedia.org/wiki/Payday_loans_in_the_United_States