Louisiana Payday Loans

La. Rev. Stat. Ann. §§ 9:3578.1 et seq.
Status: Legal

Payday loans are legal in the state of Louisiana, pursuant to La. Rev. Stat. Ann. ยงยง 9:3578.1 et seq.  The number of companies offering payday loans in Louisiana currently stands at 754.  The loan term timeframe merely states no more than 60 days, with early repayment encouraged by both the lenders and state regulators.

Payday Loan Lending Laws in Louisiana

Compared with other states that allow payday loans, the state of Louisiana has relatively simple rules and regulations.  A licensed loan company can charge a fee not to exceed 16.75% of the face amount of the check issued.  However, the maximum loan amount cannot exceed $350, and carries a $30 finance charge for a 14-day, $100 loan.  Additionally, the APR rate for those same terms currently stands at 780%.

Borrowers are not limited in the number of loans they are allowed to apply for, but they cannot renew, rollover, or extend the loan once they accepted the funds. A borrower can take another loan while having the original one unpaid, but doing so requires the borrower to pay 25% for the original loan and an additional fee to the new lender.

Louisiana regulations also carry no hard requirement for lenders to post a notice about payday loans and all the terms and conditions, although such practices are encouraged to keep potential borrowers properly informed. This should lead a potential borrower to take serious consideration before applying for a cash advance loan.  They can avoid serious problems be researching as much information about short term loans before applying, not neglecting fine print, and always making sure they understand all the details of a payday loan transaction.

In terms of collection, lenders are allowed to charge one nonsufficient funds fee per loan but any criminal actions against the borrowers for delinquency, such as threatening arrest, are considered illegal in the state.

Process

To apply for a payday loan in Louisiana, a potential borrower must meet these requirements:

  • Be at least 18 years old
  • Be employed for at least one month.
  • Have an active checking account
  • Be a U.S. citizen or permanent resident.

Lending Rules*

Lenders in the state of Louisiana are legally required to comply by the following limitations according to La. Rev. Stat. Ann. §§ 9:3578.1 et seq.:

Maximum Loan Amount:
$350
Maximum Length of Loan:
60 days
Maximum Finance Rate & Fees:
16.75% of face-value of check, not to exceed $45; + $10 documentation fee (After default: months 1-12: 36% per year; months 13 and beyond: 18% per year)
Finance Charge for 14-day $100 Loan:
$30
APR for 14-day $100 Loan:
780%
Max # Outstanding Loans at One Time:
Not Specified
Rollovers Permitted:
None (cannot renew or rollover but licensee may accept partial payment of 25% of amount advanced plus fees and enter into new loan)
Collection Fees:
One NSF fee of actual bank charge (if disclosed) + the greater of $25 or 5% of check (if disclosed); Court Costs; Reasonable Attorney's Fees
Criminal Action:
Prohibited
*The information displayed may not be current. For the most recent information, please visit http://www.paydayloaninfo.org/state-information/26.

Regulatory Information

If you have a complaint against a Louisiana Cash Advance location you can contact your state regulator below:

Regulator:
Louisiana Office of Financial Institutions
Address:
P.O. Box 94095 Baton Rouge LA 70804
Phone:
(225) 925-4660
Fax:
(225) 925-4548
Website:


Louisiana Lenders

Below you can find Louisiana payday loan lenders in the following cities:

Louisiana Statistics**

The following information is key demographic data for the state of Louisiana from the Census bureau.

Total Population:
4,681,666
Median Household Income:
$45,047
Poverty Rate:
19.6%
Median Gross Rent:
$788
High School Graduate or Higher:
83.4%
Bachelor's Degree or Higher:
22.5%
**The information displayed may not be current. For the most recent information, please visit http://www.census.gov/quickfacts.

Borrow Safely, Borrow Responsibly

While payday loans can be an effective way to address short-term financial emergencies, the responsibility of understanding the loan terms and repaying the loan rests with the borrower.  Cash advance lending companies enjoy relatively simple rules and regulations in Louisiana compared with other states, and potential users should understand the loan terms, including applicable fees and repayment schedules, before applying.  Borrowers should also contact the Louisiana Office of Financial Institutions with any concerns or questions.

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