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When you have unplanned expenses and are on a tight budget, a payday loan could be helpful. Payday loans, a type of short-term loan, give you quick access to money when you need it. Read on to find out about the laws in Massachusetts and everything else you should know about how payday advances work.
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Massachusetts has placed a strict cap on APR, which means you won’t be able to find a payday lender in the state. But if you’re facing a tough financial situation, there are other short- and long-term options for you to consider.
No. While payday lending itself isn’t illegal, the high APR lenders charge is — which means payday lenders don’t operate in the state. This is because of Massachusetts’ Small Loan Act, 209 Mass. Code Regs. 45:14(8). It caps interest at 23% and administrative fees at $20 for loans under $6,000. This applies to out-of-state lenders as well, so online loans are also effectively banned.
If you’re facing long-term financial issues, these public assistance programs may help you while you work to tackle your debt:
While getting a payday loan in Massachusetts isn’t possible, there are other short-term loan options, including these payday loan alternatives:
Payday loans aren’t available in Massachusetts, but there are other short-term options like installment loans that could help when you’re facing a crisis. Just be sure to consider your alternative options and confirm the lender is licensed before you agree to a loan.
No. Payday lenders from other states are prohibited from offering payday loans to residents of 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.
You can file a complaint with the Massachusetts Division of Banks.
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Elizabeth Barry is lead editor for Finder's global financial niches which includes banking, crypto and investments. She has written about finance for 10 years and specialises in personal finance, including new and emerging areas of banking in Australia and globally. Elizabeth is regularly featured in a range of publications and media including Seven News, the ABC, MSN, the Irish Times and Singapore Business Review.
This lender no longer offers personal loans – but other online options are still available.
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