Louisiana Payday Loan Laws – Check Max Service Charges

If you are residing in Louisiana, and if, you find yourself in a situation where your expenditure exceeds your income. Hence, you face stress and look for an alternative or traditional bank loans. Mortgage loans require one month or so for processing which may do not suit you as you need money to synch your expenses.

In this particular scenario, payday loans or quick cash loans can get you through this rough patch.

Louisiana payday loans in Lafayette, Baton Rouge and other cities of Louisiana are online and offline and designed as a small amount of cash loan until salary.

Cash loan is lent and has to repay on the borrower’s very next Salary. Amount of loan is repaid by a personal check from the borrower.

The lender holds the check until borrow’s salary, then lender deposits this check in particular account of the borrower and the loan is thereby paid off.

Despite paper check, the loan amount may be debited through electronic access to the borrower’s bank account.

Legislation of Payday Loans in Louisiana

Payday lending is considered legal in the state of Louisiana, USA. Online Louisiana Loans industry regulates through Louisiana Revised Statutes Annotated La. Stat. Ann. 9:3578.1 et seq. Louisiana state practices quite tough regulations method to protect its residents from draconian contracts.

Payday lenders companies have to comply with the existing rules and regulations of Louisiana State to obtain a license to operate in Louisiana.

According to Louisiana payday loan collection laws, every direct lender company has to register itself under state law. Direct lender companies require completing the registration process. Then state gives them permission to issue credit check or no credit check loans to residents of Louisiana.

Nevertheless, few lenders do not get a license for issuing. They work under a different license and offer loans with different titles. These unlicensed lender companies usually give bad credit payday loans in Louisiana on the very high interest rate and drive revenue. So beware of them.

Louisiana Consumer Credit Law Information

Louisiana Payday Loan Laws for the Understanding of Borrowers

  1. Louisiana payday loans online are legal loans. Lenders use different names for payday loans such as cash advance, check advance, deferred deposit check loans, deferred presentment or small loans. It is an unsecured short-term loan which is secured by borrower’s personal check. The borrower gives an agreement to have the money back out of their bank account on the salary day of the borrower or at some future date ( usually within 14 days after borrowing money).
  2. Limit of these loans is $350 at a time. The borrower is forbidden to take loan more than the limited amount by the state of Louisiana. Loans must be repaid within 60 days not longer than that.
  3. According to Louisiana Payday Loan Laws; Processing charges are fixed. Legitimate payday loan companies cannot charge more than $55 as a processing fee. Louisiana laws allow the lender to charge $30 for every $100 borrowed + $10 documentation fee.
  4. The borrower is not allowed to renew or refinance. Either, he must pay off the payday loan completely or repay at least 25% of loan amount before making another.
  5. And if the borrower repays only 25% of loan amount then he can refinance the remaining 75% of the amount borrowed with an additional fee of $20.
  6. The lenders have some legal right for collection. If one cannot repay debt when it is due then the lender can take legal steps to collect the debt.
  7. The Louisiana Payday Loan Lenders can charge more money if one cannot repay on time. Maximum Finance Rate and Fees for Louisiana are 16.75% of face value of the check, + $10 documentation fee (After default: months 1-12: 36% per year; months 13 and beyond: 18% per year)
  8. In case, if the lender deposits borrower’s check and a check is returned unpaid due to the insufficient amount in the bank account. The lender can charge you an additional $25 for processing the NSF
  9. Borrowers are allowed to apply for multiple payday loans. There is no limitation on numbers of the loan. But it is not a good idea as it may cause additional financial hardships.


  1. Payday loans are short-term loans which are not meant to meet your long-term needs. If you use these loans for the long-term purpose, it will definitely cause financial hardship.
  2. Always check your company registration. Some Illegal companies are working in the US.

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