Louisiana Payday Loan Laws

Louisiana has some of the strictest laws regarding payday loans. The lenders must follow all of the guidelines listed in the Louisiana Deferred Presentment and Small loan Act, La. Stat. Ann. § 9:3578.1 et seq. Any infractions are subject to the lender’s loss of license.

• The maximum APR cannot exceed 650%
• The maximum finance fees cannot exceed 16.75% for a $100 loan
• The maximum finance rate for defaulted loans is 36% per month up to 12 months and 18% per year after
• The maximum number of loans at once is not listed
• A loan cannot exceed a term of 60 days, and is typically a 14 day loan
• The loan default actions taken are an inflated interest up to 36%
• Rollovers are not permitted

Louisiana does not protect its consumers well when it comes to these laws. They do not require that a lender post changes to the laws or their terms. It is considered to be the responsibility of the borrower to maintain their knowledge with up-to-date information on the laws.

In Louisiana, a payday loan cannot exceed $350. The shortest term that a loan can be is 14 days with the maximum being 60 days. Rollovers are not permitted but, a customer can make payment arrangements with their lender to pay at least 25% of their loan at a time, with an increased fee rate. Louisiana charges a processing or transaction fee of $5 to$10 per loan. This fee is mandatory. No lender may waive this fee for any customer at any time.

Criminal action cannot be sought by the lender on a customer that has defaulted on their loan, Louisiana law prohibits it. Only one NSF fee can be charged per defaulted loan. A maximum of $25 or 5% of the check value can be charged in addition to the NSF fee. While a police report cannot be filed, a court case to collect a debt can be filed. A lender can ask for court costs and some attorney fees to be reimbursed.

In Louisiana, it is every man for himself when it comes to these payday loans. Lower income families find these loans to be convenient when they are in need of funds fast to prevent utility disconnections or other emergencies. They do not realize though, that this begins a vicious cycle. It is hard to get back on track financially after getting a payday loan. Louisiana has the 6th most payday loan centers in the country, with their total closing in on 1,000 locations.

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