There is no single U.S. payday-loan rulebook
The CFPB describes payday loans as usually short-term, high-cost loans, often $500 or less and commonly due on the borrower’s next payday. But whether a payday product may be offered, how it is structured and how much it can cost depends heavily on state law.
What can differ from state to state
- Whether payday lending is permitted
- Maximum loan amount
- Finance charge or rate limits
- Minimum and maximum term
- Number of simultaneous loans
- Rollovers or renewals
- Cooling-off periods
- Extended payment plans
- Database reporting
- Licensing and examination requirements
Why national APR examples are only illustrations
CFPB consumer guidance says payday finance charges can range from $10 to $30 per $100 depending on state law and uses $15 per $100 for two weeks as a common example. That example annualizes to almost 400% APR. It is not a statement that $15 per $100 is lawful in every state.
Online lenders do not escape geography
The fact that a loan is completed online does not mean state law becomes irrelevant. CFPB advises borrowers to verify whether a payday lender is licensed in their state through the state regulator or attorney general.
Rollovers and repeated borrowing
CFPB research has documented high rates of renewal and repeated use in payday lending. State rules may restrict rollovers or create extended-payment-plan rights. The borrower should check current local rules and not rely on a lender’s generic FAQ.
How AppLoans will expand this section
Wave 5 establishes the national framework first. Future state pages should only be published when they can contain verified licensing, product-availability, price-limit, rollover, complaint and regulator information from current primary sources. That produces a useful state reference rather than 50 cloned location pages.
How this fits the U.S. knowledge map
Use the U.S. Digital Lending Knowledge Center to place this topic in context. App-based borrowing can involve several overlapping layers: product structure, federal consumer law, state licensing and price rules, payment authorization, data sharing and the borrower’s actual agreement.
Related U.S. regulatory topics
- Federal vs. State Lending Rules in the United States
- Truth in Lending, APR & Finance-Charge Disclosures
- ACH Authorization & Electronic Loan Repayment
- CFPB Payday Lending Rule: Payment Withdrawal Protections
- How to Verify a U.S. Online Lender or Loan App
- Online Lenders & Loan Apps in the United States
- Loan Lead Generators & Online Marketplaces
- Tribal Lending & Online Loans: What U.S. Borrowers Should Know
- Earned Wage Access & Cash-Advance Apps in the U.S.
- How to Complain About a U.S. Loan App or Lender
Primary sources
AppLoans prioritizes government and regulatory sources. This page is educational information, not legal or financial advice. U.S. lending rules and agency guidance can change; verify current requirements with the applicable regulator and provider agreement.
- CFPB — What is a payday loan?
- CFPB — Payday loan costs and fees
- CFPB — State lender licensing verification