Virgin Islands Payday Loan Law and Legislation

Virgin Islands Payday Loan Regulations
Legal Status
Prohibited
Interest Rate (APR)
25% small loan cap

Payday lending is prohibited in the Virgin Islands.

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

Virgin Islands Payday Lending Statutes

In the state, lending is generally governed by TITLE NINE Banking, and Subchapter I. Small Loans specifically regulates the rates of interest that can be charged for small personal loans in the Virgin Islands.

According to the V.I. Code Ann. Tit. 9§182 et seq., lenders cannot charge more than 26% of interest:

  • “At no time shall the maximum annual percentage rate of interest determined under this method be lower than 19.50 percent per annum, or not more than 26 percent per annum, but shall be what the actual annual percentage rate of interest is based on the preceding formula at the time of the signing of the loan.”

Any out-of-state or online lenders have to comply with a 26% APR cap as well:

  • “Any loan made outside this territory in conformity to the law of the place where made which would have been subject to the provisions of this subchapter had it been made in this territory after July 1, 1968, may be collected in this territory by a licensee or others, but the charges thereon which may be collected shall not exceed those permitted by this subchapter.”

According to the Virgin Islands’ code, it is compulsory that all the lenders adhere to the aforementioned regulations, and, any lenders charging differently are considered to be operating illegally.

Consumer Information

More information about the Virgin Islands and the state’s laws can be found on the official website of the Office of the Lieutenant Governor in the United States Virgin Islands.

The History of Payday Loans in the Virgin Islands

  • 2000 – The V.I. Code Ann. Tit. 9§182 et seq. read that all small lenders cannot charge more than 26% APR.
  • Present days – Payday loans are currently illegal in the Virgin Islands.

[Updated As of February 2020]

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