If you’re thinking about applying for a payday loan in Vermont, read our page for more information
Being short on cash and needing to borrow a small amount of money may have you looking into payday loans, but in Vermont, payday lending is banned. Our guide has other options for you to consider.
Can I get a payday loan in Vermont?
No. Vermont Statutes Ann. tit. 9 § 41a, the small loans act, applies to all small loan lenders in the state.
The Vermont small loan act states that lenders can’t charge more than 18% per annum interest. Because payday lenders charge much higher interest than this, they are effectively banned in the staate. In addition, 8 V.S.A.§ 2519(a)(13) states that lenders aren’t permitted to hold checks for future deposits.
Some lenders use the loopholes in Vermont law to provide online payday loans in this state. However, the state is taking steps to prevent this from happening.
You may be able to apply for an installment loan
Do I have other options besides payday loans?
Programs like Medicaid, Reach Up in Vermont, Seasonal Fuel Assistance and 3SquaresVT can help you afford your everyday bills while you work on paying down your debt.
You may also want to consider some of these alternative credit options:
- Consider a credit card cash advance. If you have a credit card and haven’t met the credit limit, you can take out an advance on the remaining amount. While this is an expensive option, you have more time to pay it off than with a payday loan.
- Negotiate with your creditors. If you can’t afford to make payments on your debts, you should talk to your creditors and negotiate a lower payment. Many will be willing to adjust how much or how frequently you pay off your debt to make it more affordable for you.
- Find a credit counselor. This isn’t a quick fix, but it can help you learn how to budget and control your finances. A credit counselor can teach you ways to avoid needing something like a payday loan in the future, which will lower your debt in the long run.
What costs can I expect with a loan in Vermont?
Vermont caps small loan interest at 18%, but you may be required to pay origination fees and other charges for a loan. Because of the variety of lenders out there, we can’t say the exact costs of a loan. You’ll need to read over your loan contract very carefully before deciding. Remember, if you don’t like the terms of a loan offer, you can always choose to reject it.
Have any more questions about Vermont payday loans?
Who should I contact to file a complaint about a payday lender in Vermont?
You should get in touch with the Vermont Banking Division.
Can I get a tribal loan in Vermont?
Maybe. This is currently being contested by the state of Vermont and various tribal lenders. Keep an eye out for new regulations concerning this, and remember that a payday loan is an expensive option whether it’s from a US or Native American company.
Can I get a title loan on my car?
No. Because these are similar to payday loans and use your vehicle as collateral, Vermont bans auto title loans.