Massachissetts Payday Loan Laws and Regulations

Massachissetts Payday Loan Laws and Regulations

Are Payday Loans Legal in Massachusetts?

Short-term Payday Loans are in the state of Massachusetts and are mostly regulated through .

Massachusetts’ New Predatory Lending Law.pdf

The Payday Lending legislation covers all the parts of the process concerning:

  • Payday Loan amounts
  • Payday Loan repayment terms
  • Payday Loan online direct lenders
  • Payday Loan stores near you
  • Payday Loan interest rates and other fees
  • Payday Loan collecting practices
  • Payday Loan default penalties
  • The number of outstanding Payday Loans as well as a cooling-off period in-between etc.


Massachusetts Payday Loan Terms and Amounts

Massachusetts residents who are eligible for a Payday Loan can get cash advance caped by maximum APR of .

However, there are no limits on the purpose of loan usage. Any urgent expenses, unforeseen bills, car repair, home repair, etc. may seem a sound reason to apply for a Payday Loan in Massachusetts.

If you can’t take out a Payday Loan in Massachusetts, there are always other options to receive the necessary funds in Massachusetts: unsecured Installment Loans, bad credit Personal Loans, Title Loans, Check Cashing, Pawn Shops, etc.

Massachusetts Payday Loans online laws

Cash advances (payday loans) from online lenders are not prohibited in the state of Massachusetts but all the businesses offering cash advance under $600 must meet statutory licensing provisions. They should obtain a small loan license from the Division of Banks to offer Payday Loans to the residents of Massachusetts.

Be careful and apply for instant cash advance only from legal lenders registered in the state’s database. In this case, if you have a problem with a loan or a lending company, you can turn to Massachusetts Division of Banks: 1000 Washington Street, 10th Floor, Boston, MA 02118-6400, or by phone: (617) 956-1500 for help. But if you took an online Payday loan from an out-of-state lender over the Internet or the telephone, the help that Massachusetts can provide may be limited.

Reputable online lenders operating in accordance with all relevant state and federal laws can be applied to and compared on our platform using a simple online application form.

You state the necessary amount, fill in your personal information and get suitable offers from legit direct lenders. It takes only a few minutes and doesn’t affect your credit score. 

Massachusetts Payday Loans interest rates, fees, and other finance charges

The main part of payday loan payment is mostly made up of the interest rate, or APR. The maximum APR that may be charged for short-term cash advance in Massachusetts is 23.00%. 

Besides, the total cost of a Payday Loan may include some additional fees. Find it out with a lender.

The law obligates Massachusetts Payday Loan lenders to provide you with a written disclosure of all the rates and fees in the understandable language. You should read them carefully and if you agree to acknowledge the notification by signing the contract.

Massachusetts Payday Loans direct lenders regulations

According to Massachusetts payday loan laws all direct lenders are obliged to register their companies which will allow issuing payday loans contract. It concerns both Online Payday Loans and Payday Loans Near Me.

The main rules regarding Payday loan lenders in Massachusetts are:

  • Essential state license.
  • Complete disclosure of all the information concerning the loan such as its repayment terms, rates, fees, etc.
  • Besides, Massachusetts direct lending companies are recommended to educate the customers on the possible issues related to payday loans. Borrowers must be aware of possible risks, default penalties, other consequences of short-term loans and their alternatives.
  • Massachusetts laws prohibit offensive collecting practices connected with the due loans. Criminal action threats are banned and the lender is required to send a mail notification before starting any legal proceedings against expired contracts.

Nevertheless, you should be careful not to come across any scams. Some unfair lenders can operate without license or under a different license and offer too expensive ‘payday loans’ under illegal conditions. Always check that the lender you are going to apply to works under Massachusetts state law.

Massachusetts Payday Loans consumer information

Besides amounts, rates and fees, consumers must be also well aware of other details of Payday Loans in Massachusetts. Though the law doesn’t state any restrictions on the number of rollovers, extensions, simultaneous loans, it’s better to negotiate all these factors with a lender in advance.

Look for more detailed information on the official Massachusetts state regulator website –

Legitimate Payday Loans Online with NO credit check in Massachusetts

Looking for a legal Payday Loan with No credit check in Massachusetts? You must understand the meaning of this phrase correctly at first. No credit check implies that a lender will not inquire about your credit history information from or send your borrowing data to any of the three major credit bureaus Equifax, Experian and TransUnion.

If you don’t want to damage your credit history Massachusetts law allows you to apply for a Payday Loan with No credit check. But you should understand that a lender needs to check your creditworthiness at least in some way. He can perform a soft credit check when a lender pre-approves you for a loan and this inquiry will not appear on your credit report. Or there’re other ways to prove you can afford the cash advance. Payday Loan lenders use the tracking system to verify your debts, check your income, etc. And generally, they charge higher interest to lessen the risks.

Massachusetts Payday loans online no credit check are one of the easiest options of getting quick cash to cope with emergency financial requirements, especially for the people with poor credit.

Does Massachusetts law allow Payday Loans for bad credit borrowers?

The average credit score in Massachusetts is 710, placing it in the fair range. But it doesn’t mean that those who have a worse credit can’t apply for a Payday Loan in Massachusetts. 

  • First of all, there’re a lot of legit direct lenders in Massachusetts providing Payday cash advance to borrowers with both good and bad credit score.
  • 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.

Legit Payday Loans in Massachusetts collection practices

If you can’t repay the loan amount plus interest on a due date it means you default the loan. 

Even if you failed to pay back the loan on time, the lenders can’t do whatever they want to get the money back, their actions are limited by Massachusetts laws:

  • No criminal actions are allowed against you for a bad check.
  • No additional fees are permitted unless a lawsuit is filed and additional costs are imposed by the court.
  • The lender may seek to recover interest on its judgment but it is limited to the judgment rate in the state generally and not a rate based on the payday loan fee.

If you think that your payday lender violates the Massachusetts Payday Loans law, you may file a written complaint with Massachusetts Division of Banks: 1000 Washington Street, 10th Floor, Boston, MA 02118-6400, or by phone: (617) 956-1500, Massachusetts Division of Banks: 1000 Washington Street, 10th Floor, Boston, MA 02118-6400, or by phone: (617) 956-1500. The supervisor from that office interviews witnesses, reviews the payday lender’s business records and documentation, and determine whether to pursue civil or criminal charges

Massachusetts Payday Loans news  – latest changes

Payday lending, or deferred presentment, involves single-payment, short-term loans based on personal checks held for future deposit or on electronic access to personal checking accounts. This document also tracks loan products designed to be alternatives to payday lending.

In the 2019 legislative session, 26 states have taken new legislation regarding payday lending and payday lending alternatives. But Massachusetts has not enacted any changes.

Massachusetts Payday Loans historical background

1980 Since those times interest rates have been capped and short-term loans have been prohibited

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