Louisiana Payday Loans – Loans Online:

Louisiana Payday Loans Legal Status: Legal

Citation:
La. Stat. Ann. 9:3578.1 et seq.

Louisiana Payday Loan Terms:
Maximum Loan Amount: $350
Loan Term: 60 days
Maximum Finance Rate and Fees: $5 documentation fee + the greater of 16.75% of check or $45 (After default: months 1-12: 36% per year; months 13 and beyond: 18% per year)
Finance Charge for 14-day $100 loan: $25
APR for 14-day $100 loan: 650%

Debt Limits:
Maximum Number of Outstanding Loans at One Time: Not Specified
Rollovers Permitted: None (cannot renew or rollover but licensee may accept partial payment of 25% of amount advanced plus fees and enter into new loan)
Cooling-off Period:
Repayment Plan:

Collection Limits:
Collection Fees: One NSF fee of actual bank charge (if disclosed) + the greater of $25 or 5% of check (if disclosed); Court Costs; Reasonable Attorney’s Fees
Criminal Action: Prohibited

If you are contemplating Louisiana Payday Loans due to some financial emergency, then it might be useful for you to know the current payday loan laws. The following legal information is relevant for Louisiana residents:

1. Are Louisiana Payday Loans legal?

Yes, payday loans are legal in Louisiana.

2. What is the maximum amount that I can borrow?

You can borrow up to $350 as payday loan in Louisiana.

3. What can be the term of a payday loan in Louisiana?

The maximum payday loan term in Louisiana is 60 days.

4. What can be the maximum interest rate and fees in Louisiana?

You would need to pay either 16.75% interest on the amount mentioned on the check or $45 (whichever is greater). It is also mandatory to pay a documentation fee of $5. Note that the interest rate will shoot up (36% for the first 12 months and 18% thereafter) if you default on the loan. Also, there can be a finance charge of $25 on a loan of $100 taken for 14 days. The annual percentage rate or APR for such a loan can be as high as 650%.

5. What can be the maximum number of outstanding payday loans at one time?

Payday loan laws in Louisiana do not specify anything regarding the maximum number of outstanding payday loans.

6. Are payday loan rollovers allowed in Louisiana?

Rollover means taking a new loan to pay off the original loan. You cannot renew or rollover payday loans in Louisiana, but a financial institution may accept a partial payment of 25% of the amount advanced (plus fees) and enter into new loan.

7. Is it mandatory to have a “cooling-off” period between successive payday loans?

Payday loan laws in Louisiana do not specify anything regarding the cooling-off period between two payday loans.

8. Am I eligible for a repayment plan, if I am facing financial trouble?

Payday loan laws in Louisiana do not specify anything regarding repayment plans in case of default.

9. Is there any collection limit on payday loans in Louisiana?

Yes. The collection fees are restricted to a one time Non Sufficient Funds (NSF) fee of actual bank charge, $25 or 5% of the check amount (whichever is greater), court costs, and reasonable attorney fees.

10. Can a financial institution take criminal action against me, if I default on the loan?

Usually, it cannot. However, it is a criminal offense, if your check returns due to closed account.

11. Where should I go to file a complaint and get more information about payday loan laws in Louisiana?

Louisiana Office of Financial Institutions is the regulatory authority in Louisiana. Contact them in case of any complaints or information about Louisiana Payday Loans. You can get in touch with them at:

Where to Complain, Get Information:
Regulator: Louisiana Office of Financial Institutions
Address: P.O. Box 94095 Baton Rouge LA 70804
Phone: (225) 925-4660
Fax: (225) 925-4548
Regulatory Contact: John J. Braud,, Deputy Chief Examiner
Regulator Website

Complaint Form Link