Short-term consumer lending in the United States is governed primarily at the state legislative level, creating a diverse regulatory landscape across all fifty jurisdictions.
1. 50-State Regulatory Archetypes
| State Regulatory Model | Sample States | Statutory Max APR / Fee | Cooling-Off & Rollover Limits |
|---|---|---|---|
| Strict Usury / Prohibited (36% Hard Cap) | NY, NJ, CT, MA, PA, VT, MD, NC, GA, AR, CO, MT, SD, IL | Max 36% APR (or criminal usury statutes) | Traditional payday loans prohibited or restricted to licensed installment models |
| Fee-Regulated Traditional ($15–$20 / $100) | CA ($300 max check), FL ($500 max), OH, IN, MI, AL, TN, MS | $15.00 to $17.65 per $100 borrowed (~391% APR) | Rollovers strictly prohibited; mandatory database tracking (Veritec) |
| Credit Access Business (CAB) / Broker Model | Texas, Utah, Nevada, Idaho | Market-driven loan fees + direct lender interest | Mandatory installment schedules or statutory disclosures required |
| Statutory Extended Installment Models | Virginia (VPAFA), Washington ($700 max), Colorado | Tiered interest + monthly maintenance fees | Minimum 4-month to 6-month repayment terms |