State Payday Loan Regulation and Usage Rates

Pew's Safe Small-Dollar Loans Research Project classified states into three categories—Permissive, Hybrid, and Restrictive—based on their payday loan regulations. Nationally, the average usage rate for payday loans is 5.5 percent, but usage by state varies from 1 percent to 13 percent. Usage rates also vary by law type and are 6.6 percent in Permissive states, 6.3 percent in Hybrid states, and 2.9 percent in Restrictive states. The rate of online and other non-storefront borrowing does not vary significantly by state law type, but storefront borrowing is far lower in Restrictive states than in Permissive or Hybrid states. Roll over the map to see each state’s usage rate, and click individual states to read a summary of their payday lending laws.

To learn more, visit our collection of Payday Lending in America resources.