Oklahoma Payday Loan Law and Legislation

Oklahoma Payday Loan Regulations
Legal Status
Legal
Interest Rate (APR)
207% APR (17% monthly)
Minimum Loan Amount
Not Specified
Maximum Loan Amount
$1,500
Minimum Loan Term
60 days (2 months)
Maximum Loan Term
365 days (12 months)
Number of Outstanding Loans
2
Finance Charges
17% interest each month
nor more than 20% of the customer monthly income
Statute of Limitations
5 years
Database Loan Tracking
Yes

Payday lending is legal in Oklahoma.

In the state of Oklahoma, the maximum payday loan amount should not exceed $1,500. The loan can be given for the term from 60 days to 365 days. The interest should not exceed 17% monthly. Criminal actions are prohibited.

Oklahoma had the same payday loan regulations for years. It can be called restrictive in a certain way, however, it didn’t stop lenders from charging ~390% APR.

In 2020 year, Oklahoma Small Lenders Act restricted the payday loan business: the monthly interest rate is 17%, max amount $1,500.

Oklahoma has 77 counties with 39 Native American reservations. These figures mean that tribal payday lending schemes are more present here than in any other state.

Oklahoma Payday Lending Statutes

It is allowed for payday lending companies to function in Oklahoma according to Oklahoma Small Lenders Act (Bill 720, the bill was signed on April 18, 2019, and created new rules for payday loans business).

Before starting to offer payday loans in Oklahoma, every lending company (from the 2020 year) should apply for the deferred deposit lender license which is given by the Administration of the Department of Consumer Credit, and pay $1,900 in fees for each storefront.

Oklahoma Small Lenders Act also requires that lenders should use the statewide database to check customer eligibility for any deferred deposit product.

Payday Loan Amount in Oklahoma

  • The maximum amount of all outstanding payday loans is $1,500.

Rates, Fees and Other Charges in Oklahoma

  • Finance charges (interest) should not exceed 17% monthly.

How Much Would a $100 Payday Loan Cost in Oklahoma?

With a minimum 60 days term:
ARP: 207%
Loan cost: $34
To return: $134

Cost сalculation
17% * 2 = 34%
34% of $100 = $34

ARP сalculation:
$34 / $100 / 60 days = 0.00566 * 365 days * 100 = 207%

Payday Loan Term in Oklahoma

Consumer Information

Attention
From July 2020, lenders are not required to check a borrower’s ability to repay a loan.
Be careful, evaluate your financial situation, don’t get into a debt trap.
The rule was changed by the CFPB.

  • There is a $25 NSF fee allowed; all criminal actions are prohibited.

More information about payday loans and their regulations in Oklahoma can be found on the website of the Department of Consumer Credit of Oklahoma.

Regulator: Complaints & Information

Oklahoma Department of Consumer Credit

Address: 3615 NW 56th St #240, Oklahoma City, Oklahoma 73112-4512
Phone: 405-521-3653 or 800-448-4904 (toll free)
Fax: 405-521-6740
Url: https://www.ok.gov/okdocc/
File a Complaint: https://www.ok.gov/okdocc/Complaints/index.html

Number of Oklahoma Consumers Complaints by Topics

According to CFPB Consumer Complaint Database

  • Fraud and threat ( 97 )
  • Charges from account ( 84 )
  • Not exiting debt ( 54 )
  • Loan to return ( 20 )
  • Lender is not available ( 20 )
  • Credit rating ( 18 )
  • Not requested loan ( 18 )
  • Loan not received ( 4 )

The Quantity of Top Oklahoma Stores by Cities


Statistics

YearNo. of Clients,
thousand
No. of Loans,
thousand
Value of Fees, millionValue of Loans, millionNo. of Stores
2011358
2012213
201316580353.0383.9290
201416294452.7391.9320
201516692955.2380.8279
201619192751.1385.4254
201714589146.9359.9240
201815281545.7339.4221
2019xxxx197
Stats provided by Oklahoma Department of Consumer Credit

The History of Payday Loans in Oklahoma

  • 2003 – The Oklahoma Legislature authorized payday lending. According to the Oklahoma Deferred Deposit Lending Act (2003, amended in 2004), 2 outstanding payday loans at the time are allowed for 12 – 45 days with the maximum total amount of $500. Basically, all the loan terms stayed more or less the same for years.
  • July 1, 2004 – All licensed payday lenders must record every Oklahoma payday loan in the Oklahoma Department of Consumer Credit database and check it every time before issuing new loans.
  • 2006 – The Military Lending Act effectively capped payday loans offered to the military at 36% APR. This federal law has no exceptions, thus, no lender in Oklahoma is now allowed to offer loans to the military in excess of 36% APR.
  • However, the Demographics of Payday Lending in Oklahoma report found out some years later after the MLA came into effect that “most of the payday lenders (199 out of 324) in Oklahoma are located within 10-mile radius of military installations and base.” And this is definitely saying something about the law-abiding nature of Oklahoma payday lenders, we assume.
  • 2012Bill 1082 was signed, according to which information from the payday lending database is confidential.
  • 2013 – There were 358 licensed payday lending stores in Oklahoma according to the Center for Responsible Lending report.
  • 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).
  • 2017 – Yet, they managed to stop some of the “beneficial” high-cost products from appearing in Oklahoma. There was an unsuccessful attempt on the part of the lenders to add “installment loans” to the Oklahoma market ($1,500 maximum amount, a 12-month term, 17% monthly interest). However, Governor Mary Fallin put a veto on HB 1913.
  • April 18, 2019SB 720 was signed (creation of Small Lenders Act): all small loans from all lenders for one borrower cannot exceed $1,500; all charges (interest rate) should not be more than 17% per month.

[Updated As of June 2021]

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