Connecticut Payday Loan Laws and Regulations

Find out if short-term Payday Loans are legal in Connecticut and what amounts, interest rates and repayment terms are set by the state's Legislation.

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montana payday loans Rates and Terms

Legal Status

Legal Status

The status of a loan type according to the Federal laws and regulations. What concerns Payday Loans some states consider them legal, some – illegal and some restrict them in terms of amounts and interest rates.

Legal
Maximum Loan Amount

Maximum Loan Amount

It’s the maximum sum of cash advance allowed to apply for in the state. It usually ranges from $500 to $1000. But it may vary depending on the lender and his requirements.

$300
Minimum Loan Amount

Minimum Loan Amount

It’s the minimal amount of cash advance you can apply for. It’s not always stated, the average sum is $100. But it may vary depending on the lender and the state’s regulations.

$50
Maximum Loan Term

Maximum Loan Term

It’s the maximum period of time within which you are to allowed to pay off your loan.

31 day(s)
Minimum Loan Term

Minimum Loan Term

It’s the minimum period of time within which you are allowed to pay off your loan.

14 day(s)
Maximum APR

Maximum APR

The maximum percentage allowed that actually represents annual cost of your loan. The APR is based on several things, including the amount you borrow, the interest rate and costs you’re being charged, and the length of your loan.

36.00%
Finance Charges

Finance Charges

All the payments you’re going to be charged for the loan including APR and other fees.

$1.39 for a $100 loan given for 2 weeks

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You must have heard that Payday Loans are prohibited in Connecticut, you may find other options to get instant cash advance permitted by the state's laws. Study the rules and regulations concerning short-term loans in Connecticut. Find available alternatives.

Table of Contents:

Are Payday Loans legal in Connecticut?

Why are Payday Loans illegal in Connecticut?

Connecticut Payday Loans Laws

Connecticut Payday Loans online laws

Does Connecticut law allow Payday Loans for bad credit borrowers?

Connecticut Payday Loans news  - latest changes

Connecticut Payday Loans historical background

Connecticut Payday Loan alternatives

Are Payday Loans legal in Connecticut?

Short-term Payday Loans in Connecticut are illegal according to Conn. Gen. Stat. §§ 36a-563 et seq.. These documents also cap the APR at 12%.

Remember that regardless of this, there are other loan options available to cover your urgent expenses fast such as Installment Loans in Connecticut and Personal Loans in Connecticut.

Read more: Payday Loans in Connecticut

As we can see, The Connecticut Department of Banking, 260 Constitution Plaza Hartford CT 06103, (860) 240-8299 caps all short-term loans at 30.03% APR. 

For other details  and information on Payday Loans in Connecticut contact The Connecticut Department of Banking, 260 Constitution Plaza Hartford CT 06103, (860) 240-8299.

Why are Payday Loans illegal in Connecticut? 

The Government considers Payday Loans too expensive and often associated with lenders' predatory practices. That's why in Connecticut Payday Loans are illegal according to Conn. Gen. Stat. §§ 36a-563 et seq. which caps the APR at 30.03%.

It caused most lenders to stop issuing short-term small-dollar loans as it became not profitable. Still, there still exist some banks and online companies offering similar types of cash advance suitable to cover any unexpected emergencies.

Сonnecticut Payday Loan laws 

Payday Loans in Connecticut share the same characteristics as short-term cash advances in other states but due to high cost and short repayment terms they are prohibited in Connecticut. Lenders can't legally operate because of the rate cap set by the authorities. But we can let you compare other options available in Connecticut.

If you haven't succeeded in finding the necessary cash advance, there are always other options to receive the necessary funds in Connecticut: unsecured Installment Loans, bad credit Personal Loans, Title Loans, Check Cashing, Pawn Shops, etc.

Connecticut Payday Loans online laws 

Usually, the state's Payday Loan laws concern both storefront and online lenders. Online lenders should also operate in accordance with all relevant state and federal laws. Otherwise, they may be liable to The Connecticut Department of Banking, 260 Constitution Plaza Hartford CT 06103, (860) 240-8299 for law violations. 

For years, the Attorney General’s office has worked hard to eliminate all forms of payday lending in Connecticut. However, not all the efforts were successful as usurious loans are still available online (regardless of the fact that storefront payday lenders are no longer available in Connecticut).

Does Connecticut law allow Payday Loans for bad credit borrowers? 

The average credit score in Connecticut is 690, placing it in the good range. But it doesn't mean that those who have a worse credit can't apply for the necessary cash advance in Connecticut. 

  • First of all, there're some companies in Connecticut providing similar to Payday loan services to borrowers with both good and bad credit scores.
  • Secondly, you can always find a cosigner to increase your chances of being approved for a bad credit Payday Loan.
  • Find out how to improve your credit score and do your best to do it fast. 
  • Or consider taking out a bad credit Installment Loan, or bad credit Personal Loan.

Connecticut Payday Loans news  - latest changes

Payday lending has become really important recently as a convenient, though expensive and controversial way for borrowers in need to access instant cash advance.

However, lawmakers' usury concerns led them to cap Payday Loans in Connecticut at 36% APR. The measure also syncs up this state's payday-loan guidelines with the federal Military Lending Act adopted the previous year. That act aims to prevent U.S. servicemen and women from becoming victims of payday-loan abuses.

Connecticut's Payday Loan law also concerns debt collection practices and prohibits lenders from any criminal actions against customers.

Connecticut Payday Loans historical background 

Payday Loans have always been prohibited in Connecticut as there is no law making them legal.

Connecticut Payday Loan alternatives 

If you're looking for instant cash advance in Connecticut but not a Payday Loan, consider other alternative ways to get the necessary funds:

  • Apply for an Installment Loan - $1000 - $5000 cash advance repaid over several months or years in equal installments.
  • Sell some of your valuable stuff online or at a pawn-shop.
  • Apply for Connecticut Tribal loans. Tribal lenders can avoid the state's caps and limits as they operate outside the state regulations. 
  • Consider borrowing from a bank or credit union. 
  • Qualify for one of Federal or Connecticut state government assistance programs: the Connecticut Food Stamp Program or Winter Heating Assistance Program, etc.

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