Interested in a payday loan? In Massachusetts, you’ll have to look elsewhere.
If you’re in need of quick cash in Massachusetts, you may be considering a payday loan, but there are other options available. This guide will help you determine what type of loan is best for you.
Are payday loans legal in Massachusetts?
No. Payday loans are illegal in Massachusetts under the Small Loan Act, 209 Mass. Code Regs. 45:14(8). They are not officially banned, but the Small Loan Act caps interest at 23% and administrative fees at $20. This applies to out-of-state lenders as well, meaning online loans are also banned.
Installment loans you can apply for
Check to make sure the lender operates in Massachusetts before you apply.
Are there any alternatives to payday loans in Massachusetts?
While getting a payday loan in Massachusetts isn’t possible, you may be able to get access to credit or cash in other ways. Some options include:
- Negotiate with you creditors. If you’re struggling to meet a due date or can’t make a full payment, consider negotiating with your creditor for better terms. This is one of the best ways to pay down your debt.
- Take out a credit card cash advance. If you already have a credit card that hasn’t been maxed, you can borrow an advance on the remaining line of credit. This comes with a high APR, but it’s a longer term than payday loans and can be a quick way to make it through a rough patch.
- Ask for help from friends or family. A friend or family member may be willing to help you pay for an unexpected bill or car repair, usually without charging interest Just be sure to pay back what you owe when you can, or it could strain your relationship.
Massachusetts also has a few programs to help families in need. The Supplemental Nutrition Assistance Program (SNAP) and Transitional Aid to Families with Dependent Children (TAFDC) are two programs you might want to consider when making ends meet is tough.
Even though you can’t get a payday loan in Massachusetts, there are still plenty of options available when you’re in a bind.
Have any more questions about Massachusetts payday loans?
Can I get an online payday loan from another state?
No. Payday lenders from other states can’t offer payday loans to residents of Massachusetts.
Why are payday loans illegal in Massachusetts?
The high APR these loans come with and the high fees borrowers have to pay are some of the reasons why payday loans are illegal.
Who can get in touch with to file a complaint about a lender providing payday loans in Massachusetts?
You can file a complaint with the Massachusetts Division of Banks.