💵 Consumer RightsUpdated: September 2, 2026
State Payday Lending Regulations: Usury Caps & Rollover Prohibitions
Reviewed by Consumer Financial Protection & Small-Dollar Lending Review Board
Key Financial Takeaways
Navigating state usury laws: 36% rate cap states (CA, NY, IL, CO), maximum loan principals, cooling-off periods, and statewide regulatory databases.
Short-term lending in the United States is governed primarily by state-level usury statutes, creating dramatic variations in loan availability, maximum fees, and rollover limits.
1. State Regulatory Models
| Regulatory Model | Representative States | Usury Cap Policy | Rollover Rules |
|---|
| Strict Usury Cap (36% Limit) | CA, NY, NJ, IL, CO, MA | Loans capped at 36% APR or outright banned | Prohibited |
| Regulated Fee Structure | TX, FL, OH, NV, WA | Permits $15–$20 per $100 with state database tracking | Limited (1–2 rollovers max) |
| Cooling-Off Period Model | VA, NM, DE | Mandates 24–48 hour waiting period between loans | Mandatory Extended Payment Plans (EPPs) |
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Consumer Financial Protection & Small-Dollar Lending Review Board
Our financial analysts review consumer credit regulations, state APR usury limits, TILA disclosures, and credit-rebuilding strategies.
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