Payday loans in Pennsylvania
Pennsylvania does not allow payday loans. Nothing in the law authorises them, and loans of $50,000 or less from unlicensed lenders face a 6% yearly usury cap. Consumer discount companies with a licence must keep rates far below payday levels.
- Payday lending
- Banned
- Max cost
- None in the law
- Top amount
- None allowed
Are payday loans legal in Pennsylvania?
No, Pennsylvania prohibits payday loans through the Consumer Discount Company Act and the Loan Interest and Protection Law. State usury laws restrict how much interest a lender may charge you. On loans of $50,000 or less, this usury rule lets an unlicensed lender charge no more than six percent each year. Licensed consumer discount companies can provide loans up to $25,000. On contracts lasting up to 48 months, their interest or discount cannot exceed $9.50 per $100 each year.
Lenders operating by mail or internet from outside the state must also follow these rate limits. The Commonwealth Court decided in 2009 that state law was broken by Cash America's online payday loans. During June 2025, the Attorney General reached a settlement with collector TrueAccord regarding tribal payday loans, recovering $23,400 for roughly 234 Pennsylvanians. You may contact the Pennsylvania Department of Banking and Securities if a collector, mail lender, or online lender asks for higher rates. They accept complaints and questions by phone or online.
- The usury rule in Pennsylvania keeps payday pricing out: loans up to $50,000 carry a 6% yearly cap unless another law allows more.
- In the case of Cash America v. Banking, decided July 10, 2009, where the Commonwealth Court found online payday loans reaching Pennsylvanians broke the CDCA and state usury law.
- Doing business in the state includes internet or mail lending to Pennsylvania residents, per the Department of Banking's 2008 notice, so a licence is needed.
- During June 2025 the Attorney General reached a settlement with collector TrueAccord over tribal payday loans, returning $23,400 to about 234 Pennsylvanians as restitution.
- A licensed consumer discount company lends up to $25,000 on contracts of up to 48 months, with add-on rates charged at $9.50 per $100 per year.
Pennsylvania payday loan laws
- Law in force
- Consumer Discount Company Act and the Loan Interest and Protection Law (the usury law)
- Cited as
- 41 P.S. 201 (Act 6, enacted January 30, 1974, P.L. 13); 7 P.S. 6201 et seq. (enacted April 8, 1937, P.L. 262)
- Fees under the law
- on a loan or use of money of $50,000 or less, the law sets the maximum lawful interest rate at six per cent a year
- Installment lending limits
- On loans of $25,000 or less paid back within 48 months, Consumer Discount Company Act licensees must keep interest or discount at or below $9.50 per $100 yearly.
Also checked against pa.gov. Full statute text.
Online lenders that list Pennsylvania
Two companies we track say they lend in Pennsylvania: 1 online installment lender and 1 loan broker.
| Lender | Kind | Posted APR |
|---|---|---|
 OppLoans | Installment | 99% to 195% |
 Viva Payday Loans | Broker | Partner lenders quote 4.99% to 1,386% |
Tribal loans in Pennsylvania
Under Pennsylvania usury and consumer discount laws, internet lenders lacking an office in Pennsylvania are covered (Cash America, 2009). The Attorney General, in 2025, settled a matter with a debt collector involving online tribal payday loans that violated those rate caps.
On the immunity claim tribal lenders make, see are tribal loans legal.
None of the tribal lenders we track lists Pennsylvania as a state it serves. Browse every tribal lender we track.
Need cash in Pennsylvania? Ask about cheaper routes
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Lender cases and orders in Pennsylvania
- 2020 ยท US Court of Appeals, Third CircuitAmerican Web Loan: In Williams v. Medley, AWL's tribal-law-only arbitration clause was held unenforceable; the Pennsylvania borrowers in that case alleged unlawfully high rates. Source
Pennsylvania and the states around it
| State | Payday lending | Max cost | Top amount |
|---|---|---|---|
| Pennsylvania | Banned | None in the law | None allowed |
| Delaware | Allowed | None in the law | $1,000 (a loan of $1,000 or less qualifies as a short-term consumer loan) |
| Maryland | Banned | On the first $1,000, the rate is 2.75% monthly, or about 33% APR. | None allowed |
| New Jersey | Banned | 30% APR | None allowed |
| New York | Banned | 16% APR | None allowed |
| Ohio | Only as installments | None in the law | Each loan is limited to $1,000, and the total outstanding short-term principal for one borrower cannot exceed $2,500. |
| West Virginia | Banned | None in the law | None allowed |
Pennsylvania loans with no credit check
Installment loan rates: On loans of $25,000 or less paid back within 48 months, Consumer Discount Company Act licensees must keep interest or discount at or below $9.50 per $100 yearly.
See no credit check loans: the checks lenders still run, and the price.
Verify a lender's license in Pennsylvania
- Look the lender up on the license list before you hand over any bank details.
- Lenders here answer to the Pennsylvania Department of Banking and Securities (DoBS).
- Had trouble with a lender? Report the lender.
Sources for Pennsylvania
- A yearly cap of 6% applies to loans of $50,000 or less, except when a different law sets another limit.; The section setting the usury cap received its last amendment in 2008.legis.state.pa.us
- You need a CDCA licence to issue loans in Pennsylvania of $25,000 or less at rates higher than the standard legal limit.; Up to $9.50 per $100 each year is the allowed interest or discount for licensed consumer discount companies on contracts paid within 48 months.legis.state.pa.us
- The Commonwealth Court found that Cash America's online payday loans to Pennsylvanians were unauthorized and in violation of the LIPL and CDCA.; Doing business in the state includes consumer lending by mail or internet to Pennsylvania residents, per the Department of Banking's 2008 notice.caselaw.findlaw.com
- DoBS states that predatory payday loans have stayed out of Pennsylvania because of the state usury law.pa.gov
- In June 2025 the Attorney General reached a settlement with TrueAccord regarding its use of tribal lenders.; Rate limits in the CDCA and LIPL were broken by the tribal payday loans, the AG states.; Restitution of $23,400 and civil penalties of $5,000 were agreed upon by TrueAccord.attorneygeneral.gov
- Consumer discount companies get licensed by DoBS and submit applications via the DoBS Portal.pa.gov
- You may file complaints by phone or online using the DoBS Portal.pa.gov