Puerto Rico Payday Loan Law and Legislation

Puerto Rico Payday Loan Regulations
Legal Status
Interest Rate (APR)
25% small loan cap (or set by Finance Board)

Payday lending is prohibited in Puerto Rico.

In Puerto Rico, the Payday Lending State Statutes page on the National Conference of State Legislature reads: “Puerto Rico – Not available“. All lending is governed by state laws, there are no specific payday lending statutes, the practice is not authorized in the state.

Puerto Rico Payday Lending Statutes

In Puerto Rico, the system of law functions within the U.S. federal law system framework; however, it is based on the basics of the Spanish civil code.

In the state, all the lending is regulated by special laws and acts, and when it comes to payday loans, they are basically prohibited by Small Loan Law and Check Casher Law.

Puerto Rico Check Casher Law reads:

Licensed lenders are not permitted to cash or advance any monies on postdated checks.

Small Loan Law regulates the rates of interest that can be charged for small personal loans in Puerto Rico:

  • 2000 – According to the P.R. Laws Ann. §10-942 et seq., lenders cannot charge more than 36% APR;
  • 2001 – The rate cap is 25% and “can be set by Finance Board“.
  • 2010 – Present daysCurrent statute §10-942 et seq:
    • Per the Financial Board, they may regulate, reduce, fix, or increase fair trade through statutes. For the time needed, they are permitted to regulate pricing and maximum charges Under the law. Methods of computing interest rates may also be determined by the Financial Board.

According to these laws, it is compulsory that all the lenders adhere to the regulations, and, therefore, any lenders charging differently are considered to be operating illegally.

Consumer Information

More information about Puerto Rico and its laws can be found on the Official website of Puerto Rico.

The History of Payday Loans in Puerto Rico

  • 2000 – The P.R. Laws Ann. §10-942 et seq. read that all small lenders cannot charge more than 25% APR.
  • Present days – Payday loans are currently illegal in Puerto Rico.

[Updated As of February 2020]

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