Payday loans in Massachusetts
In Massachusetts, payday loans are effectively illegal. The Small Loan statute demands a Division of Banks licence whenever $6,000 or less is lent at over 12%. Licensees may charge no more than 23% annually plus a $20 fee.
- Payday lending
- Banned
- Max cost
- 23% APR
- Top amount
- None allowed
Are payday loans legal in Massachusetts?
No, high yearly rates make payday loans illegal in Massachusetts under the Massachusetts Small Loan statute. A Massachusetts Division of Banks licence is required for any company lending $6,000 or less if interest and expenses exceed 12% a year. The law limits licensed lenders to a maximum annual rate of 23%. They can also charge a $20 administrative fee, but just once every 12 months.
Instead of using a larger face amount before fees, state law counts the $6,000 limit based on the actual cash you receive. When an unlicensed online company issues a small loan, buys one, or charges over the legal limit, that loan is void. Collection on a void debt is illegal, and such a debt cannot be enforced. You can verify a lender's licence in the Nationwide Multistate Licensing System before you borrow. A complaint about any lender problem can also go to the Division of Banks.
- Massachusetts sets an unusually low cap: licensed small loan companies can charge 23% a year. The $20 administrative fee is allowed only once per 12-month period.
- Any loan up to $6,000 with a yearly cost above 12% requires a licence from the Division of Banks. The licensing trigger is very low.
- The borrower's actual cash received is what counts toward the $6,000 limit, so the settlement in the Attorney General's LendingClub case covered loans whose larger face amount dropped below $6,000 once origination fees came out.
- In May 2024 the Attorney General reached a deal with EasyPay concerning an alleged rent-a-bank scheme averaging an APR over 100%, which stopped its lending in the state and secured $625,000 in restitution.
- The Division of Banks has taken action against payday lenders since 2005 and cautions debt collectors that pursuing void small loans violates the law.
- On October 10, 2025, changes became effective for the small loan regulation known as 209 CMR 20.00.
Massachusetts payday loan laws
- Law in force
- Massachusetts Small Loan statute
- Cited as
- Mass. Gen. Laws ch. 140, sections 96 through 114A; 209 CMR 26.01 (Small Loan Rate Order)
- Fees under the law
- Calculated by the actuarial method, the charge is 23% per annum on unpaid balances of the amount financed, along with a $20 administrative fee.
- Installment lending limits
- A licensed small loan company lending $6,000 or less can charge 23% a year; a $20 administrative fee may be added, but only once in any 12-month period (209 CMR 26.01). Any loan of $6,000 or less priced above 12% a year needs a licence (Mass. General Laws ch. 140, section 96)
Also checked against mass.gov. Full statute text.
Online lenders that list Massachusetts
Four companies we track say they lend in Massachusetts: 3 tribal lenders and 1 loan broker.
| Lender | Kind | Posted APR |
|---|---|---|
 Viva Payday Loans | Broker | Partner lenders quote 4.99% to 1,386% |
Tribal loans in Massachusetts
In Massachusetts, small loans from unlicensed lenders are void; hundreds of payday lenders, many online, have received cease orders from the Division of Banks, and the Attorney General has pursued an online lender working with an out-of-state bank partner.
On the immunity claim tribal lenders make, see are tribal loans legal.
Three tribal lenders we track list Massachusetts as a state they lend in. One of the three publishes an APR: 99% to 490%. That lender posts a top APR above Massachusetts's 23% APR cap.
| Lender | Posted APR |
|---|---|
 Spotloan | 99% to 490% |
 Minto Money | Not published |
| American Web Loan | Not published |
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Lender cases and orders in Massachusetts
- 2026 · Massachusetts Division of BanksBrigit: The settlement involves Brigit paying $1.9 million for unregistered third party loan servicing in Massachusetts, with no admission of wrongdoing. Source
- 2025 · Massachusetts Division of BanksMinto Money: A consumer warning stated that tribal lenders lack licensing in Massachusetts and listed Minto Money as one still promoting predatory loans. Source
Massachusetts and the states around it
| State | Payday lending | Max cost | Top amount |
|---|---|---|---|
| Massachusetts | Banned | 23% APR | None allowed |
| Connecticut | Banned | 36% APR | None allowed |
| New Hampshire | Banned | 36% APR | The most principal a borrower can owe one lender is $500. |
| New York | Banned | 16% APR | None allowed |
| Rhode Island | Allowed | $10.00 per $100 borrowed | $500 |
| Vermont | Banned | None in the law | None allowed |
Massachusetts loans with no credit check
Installment loan rates: A licensed small loan company lending $6,000 or less can charge 23% a year; a $20 administrative fee may be added, but only once in any 12-month period (209 CMR 26.01). Any loan of $6,000 or less priced above 12% a year needs a licence (Mass. General Laws ch. 140, section 96).
See no credit check loans: the checks lenders still run, and the price.
Verify a lender's license in Massachusetts
- Look the lender up on the license list before you hand over any bank details.
- Lenders here answer to the Massachusetts Division of Banks (DOB).
- Had trouble with a lender? Report the lender.
Sources for Massachusetts
- In Massachusetts, the Division of Banks states that so-called payday loans are illegal due to their high APR.; You need a Division of Banks licence to make small-dollar loans in Massachusetts.mass.gov
- Loans of $6,000 or less fall under the Small Loan statute.; You must have a licence if interest and expenses on such a loan go over 12% a year.malegislature.gov
- Small loans are capped by the Small Loan Rate Order at 23% yearly plus a $20 administrative fee.; Borrowers can be billed the $20 administrative fee just one time during any 12-month span.law.cornell.edu
- If an unlicensed person makes a small loan, that loan is void.malegislature.gov
- According to the Division of Banks, small loans from unlicensed lenders or those exceeding legal rate limits are void.; Debt collectors receive a warning from the Division: it is illegal to collect debt that is void or unenforceable.; Hundreds of payday lenders have faced cease orders from the Division starting in 2005.mass.gov
- On May 22, 2024, officials announced the Attorney General's EasyPay settlement.; Restitution of $625,000 must be paid by EasyPay, which also must halt lending in Massachusetts.; The AG claimed EasyPay worked with an out-of-state bank to bypass state rate caps, charging an average APR above 100%.mass.gov
- Face amounts do not define the $6,000 limit under the Small Loan statute; instead, the actual disbursed sum counts.; LendingClub, operating online, consented to end over-cap small loans in Massachusetts and paid $1.25 million.mass.gov
- Changes to the small loan rules at 209 CMR 20.00 became effective on October 10, 2025.mass.gov
- The Division of Banks advises consumers to check licensee status via NMLS.mass.gov
- The Division of Banks accepts complaints from residents regarding financial products.mass.gov