Payday Loans are Legal in Louisiana

Find a Lender

Table of Contents

Beware of predatory lending

Payday Lenders in Louisiana

In Louisiana, payday loans are a common form of short-term borrowing that is primarily designed for people who need additional financial resources quickly due to temporary personal circumstances.
Louisiana has the highest payday loan usage rate in the United States, with 10% of residents using them. These small loans have a short repayment schedule that is usually due the next payday. Before signing a payday loan agreement, borrowers must carefully review the terms and fees, which can be significant. According to a 2021 report by the Louisiana Budget Project, the average payday loan borrower in Louisiana takes out 10 loans per year and pays over $700 in fees alone. To make an informed decision, it is important that borrowers fully understand all conditions associated with the loan.
Finding a legitimate payday loan in Louisiana can be difficult. It can be hard to choose the best lender when there are so many companies offering different options. By comparing the offers of different lenders and researching their reputation, you can find a reliable and safe payday loan. Start by researching their reputation. If they have received a lot of negative feedback online, it could be a sign that they are untrustworthy. To ensure a positive experience, take the time to read reviews and ask friends for recommendations.

Payday Loan Louisiana

Louisiana has very few laws regulating payday loans throughout the state. While most states are pushing for more stringent rules, Louisiana is actually elevating them and allowing more leeway to lenders rather than protection for borrowers. The Louisiana Deferred Presentment and Small Loan Act is the main piece of legislation that oversees lenders and terms of payday loans. It sets the limit that can be borrowed and prohibits rollovers unless 25% of the amount borrowed and any fees have been paid off. 

The State of Louisiana has two main pieces of legislation that govern payday loans:

  • La. Stat. § 9:3529: Establishes parameters for collection fees and collection process.
  • La. Stat Ann. § 9:3578: Lays out terms for payday loans and terms for repayment plans.

Loan Terms and Conditions

Maximum loan amount: $350

Maximum Interest Rate: 782%

Minimum loan term: no specified minimum

Maximum loan term: 60 days

Number of rollovers allowed: Only allowed once 25% of initial advance and fees is paid

Finance Charge: 16.75% (cannot exceed $45) plus documentation fee

Legal action: 10 Years

Certified Payday Lenders in Louisiana

Company NameCompany score License Status
ENOVA International, Inc7.4Valid
CURO Intermediate Holdings6.8Valid
Populus Financial Group, Inc.6.2Valid
LDF Holdings, LLC5.3Valid
GVA Holdings, LLC5.1Valid
Advance America, Cash Advance Centers, Inc.4.8Valid

History of Louisiana Payday Loans

Prior to the 1990s, Louisiana had a usury cap of 12% on loans, but the Louisiana Deferred Presentment and Small Loan Act, exempted payday loans from those laws, leading to the opening of payday loan stores throughout the state. In 2010, the Louisiana Legislature passed legislation allowing increased fees on payday loans, then in 2014, another bill was introduced attempting to cap payday loan APR at 36%, but it ended up failing to pass. Later, in 2018, the Louisiana Senate attempted to expand the payday loan industry with the Louisiana Credit Access Loan Act, which would allow loans from $500 to $875 for 3-12 month terms, but the effort again failed in a House committee.

State Resources

How to file a complaint

The Office of Financial Institutions accepts complaints concerning potential fraud or misconduct related to payday loans. Upon receipt of a complaint, they will review the information provided and look at any other complaints to determine if the issue is in its jurisdiction. Louisiana does not have an online form, borrowers must go to the website to print the complaint form then submit by email, fax or mail.
  • ADDRESS

Louisiana Payday Loans Debt Relief

How to Get out of Payday Loan Debt?

Getting out of payday loan debt can be challenging but it is doable; the key lies in understanding the loan terms and creating a budget that includes the repayment amount. Speak with your lender about extended repayment plans or modifications that might help ease the financial burden or seek the services of a credit counseling agency that specializes in creating repayment plans tailored specifically for you based on your budget. Be wary of debt settlement companies offering quick fixes with high fees as these may not be legitimate – the key lies in sticking with repayment and avoiding new payday loans.

Support Resources

Types of Quick Loans in Louisiana

Alternatives to Payday Loans in Louisiana

Personal Loans

Personal loans are another option for those in need of quick cash in Louisiana. Personal loans are usually unsecured, meaning they do not require collateral, and can be used for a variety of purposes. Interest rates and fees for personal loans vary depending on the lender and the borrower's credit history. It is important to carefully compare options and choose a reputable lender with transparent terms and conditions.

Land Loans

Land loans in Louisiana are typically secured loans that require the land to be used as collateral. They are most commonly used for purchasing land or refinancing existing land loans. Some lenders may also offer fixed or adjustable interest rates, giving borrowers the option to choose the best option for their financial situation. However, it is important to note that these loans can be more difficult to obtain, as lenders may require a larger down payment and stricter credit requirements.

Bad Credit Loans in Louisiana

For those with bad credit, obtaining a loan can be a challenge. However, there are options available in Louisiana that are referred to as bad credit loans. These loans typically have higher interest rates and fees than traditional loans, but can provide access to quick cash for those in need.

Louisiana Small Business Loans

Small business loan options in Louisiana:

  • SBA loans: Low-interest loans backed by the Small Business Administration that can be used for a variety of purposes, including working capital, equipment purchases, and real estate.
  • Business Expansion Loans: These loans are available to businesses looking to expand or purchase new equipment. They can be used for a variety of purposes, including buying inventory, hiring employees, or expanding your business.
  • Community Development Financial Institutions (CDFIs): These organizations provide financing options for small businesses that may not qualify for traditional bank loans. CDFIs offer microloans, lines of credit, and other financing options.
  • Equipment Financing: This type of loan is specifically designed for equipment purchases and can often offer favorable interest rates and terms.
  • Merchant Cash Advance: Loans that provide cash upfront in exchange for a portion of future sales.

VA loans in Louisiana

VA loans are available to eligible veterans and their families in Louisiana. These loans are guaranteed by the Department of Veterans Affairs and can provide access to affordable housing for those who have served in the military. Interest rates for VA loans are typically lower than other loan options, and there is no requirement for a down payment. VA loans in Louisiana have a maximum loan amount limit of $726,2000 as of January 1, 2023. Borrowers can also use VA loans for home renovations or to refinance an existing mortgage. The loan process for a VA loan in Louisiana can take longer than other loan options, but the benefits for eligible veterans and their families can make it a worthwhile choice.

Louisiana Student Loans

Many options are available to Louisiana students to help finance their college education. These options include:

  • Federal Student Loans: Low-interest loans backed by the federal government that can be used to pay for education expenses.
  • Louisiana Office of Student Financial Assistance: This state agency offers need-based grants, scholarships, and work-study programs to Louisiana residents.
  • Taylor Opportunity Program for Students (TOPS): This state-funded scholarship program covers tuition and some fees for eligible Louisiana residents attending a Louisiana public college or university.
  • Go Grant: This need-based grant is awarded to Louisiana residents attending eligible Louisiana colleges and universities.
  • Private Student Loans: Loans offered by private lenders that can be used to pay for education expenses, with interest rates and terms that can vary widely.

Louisiana Income Information

The recently released 2021 U.S. Census reports show Louisiana having a median household income of $53,571, significantly lower than the national median of $69,021. Louisiana has a diverse economy with major industries including petrochemical production, agriculture, seafood, and tourism. Louisiana’’s median household income varies widely by parish, with Ascension Parish being the highest at $82,594, and East Carroll Parish being the lowest at $24,551, 62.2% below the national average. The state’s poverty rate was 19.6% in 2021.

United States Census Bureau. “Poverty in the United States: 2021.” Accessed on April 24, 2023.
United States Census Bureau. U.S. Census Bureau QuickFacts: Louisiana. Accessed on April 24, 2023.

Louisiana Payday Lender Complaints

Below are trends associated with some payday lenders in Louisiana, as reported to the Consumer Financial Protection Bureau.
Company Name Count
ENOVA International, Inc 18
CURO Intermediate Holdings 14
Populus Financial Group, Inc. (F/K/A Ace Cash Express) 11
LDF Holdings, LLC 6
GVA Holdings, LLC 5
Advance America, Cash Advance Centers, Inc. 4
Total Complaints 138

Consumer Financial Protection Bureau. Consumer Complaint Database. Accessed on April 24, 2023.

Most Common Issues

Complaint type Count
Struggling to pay loan 34
Unexpected fees or interest 31
Received loan didn’t apply for 16
Can’t contact lender 12
Payment wasn’t credited to account 9

What are the main reasons residents of Louisiana apply for payday cash advance online or offline

Payday loans are typically used for nonnegotiable everyday expenses like your rent, utilities, and groceries. Per data reported by Pewtrust, the percentage of reasons described below

Reason Share
Regular Expenses (Utilities, car payment) 53%
Unexpected emergency/expense 16%
Rent/Mortgage 10%
Something Special 8%
Other 5%
Did not answer 2%
 

Payday Lenders by City

  • New Orleans
  • Baton Rouge
  • Shreveport
  • Metairie
  • Lafayette
  • Lake Charles
  • Kenner
  • Bossier City
  • Monroe
  • Alexandria
  • Prairieville
  • Houma
  • Marrero
  • Central
  • Laplace
  • New Iberia
  • Slidell
  • Terrytown
  • Ruston
  • Chalmette
  • Bayou Cane
  • Sulphur
  • Harvey
  • Shenandoah
  • Hammond
  • Zachary
  • Natchitoches
  • Gretna
  • Estelle
  • Opelousas

Payday Loans are Legal in Louisiana

Find a Lender

Table of Contents

Beware of predatory lending

Payday Lenders in Louisiana

In Louisiana, payday loans are a common form of short-term borrowing that is primarily designed for people who need additional financial resources quickly due to temporary personal circumstances.
Louisiana has the highest payday loan usage rate in the United States, with 10% of residents using them. These small loans have a short repayment schedule that is usually due the next payday. Before signing a payday loan agreement, borrowers must carefully review the terms and fees, which can be significant. According to a 2021 report by the Louisiana Budget Project, the average payday loan borrower in Louisiana takes out 10 loans per year and pays over $700 in fees alone. To make an informed decision, it is important that borrowers fully understand all conditions associated with the loan.
Finding a legitimate payday loan in Louisiana can be difficult. It can be hard to choose the best lender when there are so many companies offering different options. By comparing the offers of different lenders and researching their reputation, you can find a reliable and safe payday loan. Start by researching their reputation. If they have received a lot of negative feedback online, it could be a sign that they are untrustworthy. To ensure a positive experience, take the time to read reviews and ask friends for recommendations.

Payday Loan Louisiana

Louisiana has very few laws regulating payday loans throughout the state. While most states are pushing for more stringent rules, Louisiana is actually elevating them and allowing more leeway to lenders rather than protection for borrowers. The Louisiana Deferred Presentment and Small Loan Act is the main piece of legislation that oversees lenders and terms of payday loans. It sets the limit that can be borrowed and prohibits rollovers unless 25% of the amount borrowed and any fees have been paid off. 

The State of Louisiana has two main pieces of legislation that govern payday loans:

  • La. Stat. § 9:3529: Establishes parameters for collection fees and collection process.
  • La. Stat Ann. § 9:3578: Lays out terms for payday loans and terms for repayment plans.

Loan Terms and Conditions

Maximum loan amount: $350

Maximum Interest Rate: 782%

Minimum loan term: no specified minimum

Maximum loan term: 60 days

Number of rollovers allowed: Only allowed once 25% of initial advance and fees is paid

Finance Charge: 16.75% (cannot exceed $45) plus documentation fee

Legal action: 10 Years

Certified Payday Lenders in Louisiana

Company NameCompany score License Status
ENOVA International, Inc7.4Valid
CURO Intermediate Holdings6.8Valid
Populus Financial Group, Inc.6.2Valid
LDF Holdings, LLC5.3Valid
GVA Holdings, LLC5.1Valid
Advance America, Cash Advance Centers, Inc.4.8Valid

History of Louisiana Payday Loans

Prior to the 1990s, Louisiana had a usury cap of 12% on loans, but the Louisiana Deferred Presentment and Small Loan Act, exempted payday loans from those laws, leading to the opening of payday loan stores throughout the state. In 2010, the Louisiana Legislature passed legislation allowing increased fees on payday loans, then in 2014, another bill was introduced attempting to cap payday loan APR at 36%, but it ended up failing to pass. Later, in 2018, the Louisiana Senate attempted to expand the payday loan industry with the Louisiana Credit Access Loan Act, which would allow loans from $500 to $875 for 3-12 month terms, but the effort again failed in a House committee.

State Resources

How to file a complaint

The Office of Financial Institutions accepts complaints concerning potential fraud or misconduct related to payday loans. Upon receipt of a complaint, they will review the information provided and look at any other complaints to determine if the issue is in its jurisdiction. Louisiana does not have an online form, borrowers must go to the website to print the complaint form then submit by email, fax or mail.
  • ADDRESS

Louisiana Payday Loans Debt Relief

How to Get out of Payday Loan Debt?

Getting out of payday loan debt can be challenging but it is doable; the key lies in understanding the loan terms and creating a budget that includes the repayment amount. Speak with your lender about extended repayment plans or modifications that might help ease the financial burden or seek the services of a credit counseling agency that specializes in creating repayment plans tailored specifically for you based on your budget. Be wary of debt settlement companies offering quick fixes with high fees as these may not be legitimate – the key lies in sticking with repayment and avoiding new payday loans.

Support Resources

Types of Quick Loans in Louisiana

Alternatives to Payday Loans in Louisiana

Personal Loans

Personal loans are another option for those in need of quick cash in Louisiana. Personal loans are usually unsecured, meaning they do not require collateral, and can be used for a variety of purposes. Interest rates and fees for personal loans vary depending on the lender and the borrower's credit history. It is important to carefully compare options and choose a reputable lender with transparent terms and conditions.

Land Loans

Land loans in Louisiana are typically secured loans that require the land to be used as collateral. They are most commonly used for purchasing land or refinancing existing land loans. Some lenders may also offer fixed or adjustable interest rates, giving borrowers the option to choose the best option for their financial situation. However, it is important to note that these loans can be more difficult to obtain, as lenders may require a larger down payment and stricter credit requirements.

Bad Credit Loans in Louisiana

For those with bad credit, obtaining a loan can be a challenge. However, there are options available in Louisiana that are referred to as bad credit loans. These loans typically have higher interest rates and fees than traditional loans, but can provide access to quick cash for those in need.

Louisiana Small Business Loans

Small business loan options in Louisiana:

  • SBA loans: Low-interest loans backed by the Small Business Administration that can be used for a variety of purposes, including working capital, equipment purchases, and real estate.
  • Business Expansion Loans: These loans are available to businesses looking to expand or purchase new equipment. They can be used for a variety of purposes, including buying inventory, hiring employees, or expanding your business.
  • Community Development Financial Institutions (CDFIs): These organizations provide financing options for small businesses that may not qualify for traditional bank loans. CDFIs offer microloans, lines of credit, and other financing options.
  • Equipment Financing: This type of loan is specifically designed for equipment purchases and can often offer favorable interest rates and terms.
  • Merchant Cash Advance: Loans that provide cash upfront in exchange for a portion of future sales.

VA loans in Louisiana

VA loans are available to eligible veterans and their families in Louisiana. These loans are guaranteed by the Department of Veterans Affairs and can provide access to affordable housing for those who have served in the military. Interest rates for VA loans are typically lower than other loan options, and there is no requirement for a down payment. VA loans in Louisiana have a maximum loan amount limit of $726,2000 as of January 1, 2023. Borrowers can also use VA loans for home renovations or to refinance an existing mortgage. The loan process for a VA loan in Louisiana can take longer than other loan options, but the benefits for eligible veterans and their families can make it a worthwhile choice.

Louisiana Student Loans

Many options are available to Louisiana students to help finance their college education. These options include:

  • Federal Student Loans: Low-interest loans backed by the federal government that can be used to pay for education expenses.
  • Louisiana Office of Student Financial Assistance: This state agency offers need-based grants, scholarships, and work-study programs to Louisiana residents.
  • Taylor Opportunity Program for Students (TOPS): This state-funded scholarship program covers tuition and some fees for eligible Louisiana residents attending a Louisiana public college or university.
  • Go Grant: This need-based grant is awarded to Louisiana residents attending eligible Louisiana colleges and universities.
  • Private Student Loans: Loans offered by private lenders that can be used to pay for education expenses, with interest rates and terms that can vary widely.

Louisiana Income Information

The recently released 2021 U.S. Census reports show Louisiana having a median household income of $53,571, significantly lower than the national median of $69,021. Louisiana has a diverse economy with major industries including petrochemical production, agriculture, seafood, and tourism. Louisiana’’s median household income varies widely by parish, with Ascension Parish being the highest at $82,594, and East Carroll Parish being the lowest at $24,551, 62.2% below the national average. The state’s poverty rate was 19.6% in 2021.

United States Census Bureau. “Poverty in the United States: 2021.” Accessed on April 24, 2023.
United States Census Bureau. U.S. Census Bureau QuickFacts: Louisiana. Accessed on April 24, 2023.

Louisiana Payday Lender Complaints

Below are trends associated with some payday lenders in Louisiana, as reported to the Consumer Financial Protection Bureau.
Company Name Count
ENOVA International, Inc 18
CURO Intermediate Holdings 14
Populus Financial Group, Inc. (F/K/A Ace Cash Express) 11
LDF Holdings, LLC 6
GVA Holdings, LLC 5
Advance America, Cash Advance Centers, Inc. 4
Total Complaints 138

Consumer Financial Protection Bureau. Consumer Complaint Database. Accessed on April 24, 2023.

Most Common Issues

Complaint type Count
Struggling to pay loan 34
Unexpected fees or interest 31
Received loan didn’t apply for 16
Can’t contact lender 12
Payment wasn’t credited to account 9

What are the main reasons residents of Louisiana apply for payday cash advance online or offline

Payday loans are typically used for nonnegotiable everyday expenses like your rent, utilities, and groceries. Per data reported by Pewtrust, the percentage of reasons described below

Reason Share
Regular Expenses (Utilities, car payment) 53%
Unexpected emergency/expense 16%
Rent/Mortgage 10%
Something Special 8%
Other 5%
Did not answer 2%
 

Payday Lenders by City

  • New Orleans
  • Baton Rouge
  • Shreveport
  • Metairie
  • Lafayette
  • Lake Charles
  • Kenner
  • Bossier City
  • Monroe
  • Alexandria
  • Prairieville
  • Houma
  • Marrero
  • Central
  • Laplace
  • New Iberia
  • Slidell
  • Terrytown
  • Ruston
  • Chalmette
  • Bayou Cane
  • Sulphur
  • Harvey
  • Shenandoah
  • Hammond
  • Zachary
  • Natchitoches
  • Gretna
  • Estelle
  • Opelousas

Frequently Asked Questions

Will applying for a payday loan impact my credit?

Payday loans are typically not reported to the three major credit reporting agencies, and most lenders do not conduct credit checks as part of their application process.

What do I need to apply for a payday loan?

To apply for a payday loan in Louisiana, you will need to provide identification, proof of income, a bank account, Social Security number, and contact information

Can I cancel my payday loan?

Borrowers have the right to cancel a payday loan by the close of business on the next business day following the loan disbursement date, without any penalty or additional cost. The borrower must return the entire amount of the loan to the lender to cancel the loan.

Can a payday loan lender garnish my wages?

Yes, payday lenders can garnish your wages in Louisiana if they obtain a court order allowing them to do so.

Can spouses have separate loans?

Yes, spouses can have separate payday loans in Louisiana.

When will I receive my funds if I am approved for a payday loan?

If approved for a payday loan in Louisiana, the funds are typically available on the same day or the following business day.

What happens if I can’t repay my payday loan on time?

Prior to the loan’s due date, partial payments of $50 or more must be accepted by the lender and applied to the outstanding balance; however, legal action may be taken by the lender to collect the debt on or after the due date.

When could I apply for another payday loan?

There is no specified cooling-off period before you can take out another payday loan.
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