Louisiana Payday Loan Law and Legislation

Louisiana Payday Loan Regulations
Legal Status
Legal
Interest Rate (APR)
391%*
Maximum Loan Amount
$350
Minimum Loan Term
Not Specified
Maximum Loan Term
30 days
Finance Charges
16.75% of the amount advanced

While most states try to restrict payday lending regulations, Louisiana seems to be going in the reverse direction. In the light of the looming CPPB payday loan rule, lenders tried to push a bill that would extend the payday loan options (higher loan amount, longer terms).

However, fortunately, the bill died in a House committee and Louisiana is to stay with the existing payday loan regulations for now.

Louisiana Payday Lending Statutes

La. Stat. Ann. 9:3578.1 et seq., or Louisiana Deferred Presentment and Small Loan Act, regulates the industry.

Other payday loan regulations:

In order to operate in the state, payday lenders are required to obtain a license with the Louisiana Office of Financial Institutions (OFI).

A full list of licensed lenders can be accessed on the Active Payday Licensees page.

Loan Amount in Louisiana

According to the Louisiana Deferred Presentment and Small Loan Act, it is forbidden to lend more than $350 in Louisiana.

Rates, fees and other charges in Louisiana

Lenders willing to operate in the state should adhere to the following charges and fees allowed:

  • “A licensee may charge a fee not to exceed 16.75 percent of the face amount of the check issued.” (La. Stat. Ann. 9:3578.1 et seq.)
  • Thus, 16.75% max. of amount loaned; $45 max fee; + $10 documentation fee.
  • Plus, a finance charge for 14-day $100 loan is $30.

APR can reach 391% (*According to the Center for Responsible Lending 2019: “Typical APR based on average rate for a $300 loan advertised by largest payday chains or as determined by state regulator, where applicable.”).

Maximum term for a payday in Louisiana

  • The loans are given for a period of up to 30 days.
  • Rollovers are not allowed in Louisiana.

Consumer Information

  • Criminal charges are prohibited in the state of Louisiana.

In case of any assistance in regard to payday loans, one can contact the Louisiana Office of Financial Institutions (OFI).

The History of Payday Loans in Louisiana

  • Before 1990s – Louisiana had 12% usury cap on loans.
  • 1990sLa. Stat. Ann. 9:3578.1 et seq., or Louisiana Deferred Presentment and Small Loan Act, exempted payday loans from usury laws and the payday loan stores opened for business.
  • 2006 – The Military Lending Act effectively capped payday loans offered to the military at 36% APR.
  • 2010 – The Legislature passed a law that allowed increased fees on payday loans.
  • 2014 – The Louisiana Legislature took an attempt to pass the bill that would have capped payday loan APR at 36%. The bills didn’t pass.
  • June 2, 2016 – The Consumer Financial Protection Bureau (CFPB) proposed a Payday Loan Rule that hasn’t yet fully come into effect (the federal rule is expected in November 2020).
  • 2018 – The Louisiana Senate tried to pass a bill to expand payday industry (the Louisiana Credit Access Loan Act that would allow payday loans from $500 to $875 for terms of 3-12 months), however, an effort failed in a House committee.

(As of April 2019)

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