West Virginia Payday Loan Law and Legislation

West Virginia Payday Loan Regulations
Legal Status
Prohibited
Interest Rate (APR)
31% APR for loans up to $2,000

Payday lending is prohibited in West Virginia.

In the state of West Virginia, there is no legal payday lending as no check cashing businesses are allowed to offer payday loans. All licensed lenders must comply with the 31% APR loan cap for loans up to $2,000.

West Virginia Payday Lending Statutes

The official website of the West Virginia Division of Financial Institutions reads that “Payday Lenders” are generally prohibited within this state.”

As a matter of fact, many states offer payday service through the check cashing businesses. According to the lending laws of the state, it’s not an option in West Virginia.

In fact, there is a ban on payday cash advances prohibiting businesses functioning in the territory of West Virginia to provide customers short-term payday loans according to W. Va. Code 46A-4-107 and 32A-3-1 et seq.

“(b) Merchants may not, in connection with providing check cashing services, agree to hold checks submitted to them for deposit at a later date for the purpose of providing a loan of money and deriving profit therefrom.”

This means you cannot go to a local check cashing company to obtain a payday loan in West Virginia.

Rates, fees and other charges in West Virginia

  • There is an option of consumer lending; however, lenders operating in the state should adhere to 31% APR small loan rate cap on a loan of $2,000 or less.

Consumer Information

More information about payday loan laws and regulations in West Virginia can be found on the official website of the West Virginia Division of Financial Institutions.

The History of Payday Loans in West Virginia

  • West Virginia never allowed payday lending in the state.
  • Present days – As of 2019, by law payday loans remain prohibited in the state of West Virginia.

(As of May 2019)

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