Payday loans in West Virginia
West Virginia generally bans payday lending: check cashers cannot keep checks for future deposit to issue loans, and licensed finance companies must follow rate caps of 31% a year or lower.
- Payday lending
- Banned
- Max cost
- None in the law
- Top amount
- None allowed
Are payday loans legal in West Virginia?
No, under the Consumer Credit and Protection Act and the state Check Cashing law, payday loans are generally prohibited in West Virginia. Your check cannot be held by merchants or check cashers for later deposit to create a loan. The unpaid principal on regulated loans of $3,500 or less from licensed finance companies may carry a yearly rate of up to 31 percent. Unpaid principal means the original sum you borrowed that you still owe. For loans exceeding $3,500 but not more than $15,000, the cap falls to 27 percent, while loans above $15,000 have an 18 percent limit.
West Virginia also limits a check cashing fee to one percent of the check or one dollar, whichever is more. In 2008 the Attorney General took online lender CashCall to court, alleging it partnered with a bank to dodge state rate laws. A regulated lender must hold a state license, so confirm that yours has one and keeps to these caps. Complaints can go in writing to the Division of Financial Institutions or to the Attorney General's Consumer Protection Division.
- West Virginia prohibits payday lending through its check cashing law, which bars merchants and licensees from holding checks for later deposit to fund loans.
- The most you pay in check cashing fees is $1 or 1% of the check, whichever is higher.
- Loans from finance companies of $3,500 or less have a 31% yearly cap, while larger loans face lower tiers of 27% and 18%.
- A law passed in 2019 raised the loan-size tiers, and the new amounts started on June 7, 2019.
- The Attorney General's 2008 lawsuit targeted CashCall for a rent-a-bank online lending model; a federal court remanded the case to Kanawha County circuit court in 2009.
West Virginia payday loan laws
- Law in force
- Chapter 32A, Article 3 (check cashing) and the Regulated Consumer Lenders part of the Consumer Credit and Protection Act (Chapter 46A, Article 4)
- Cited as
- W. Va. Code 46A-4-107, 46A-4-101 and 32A-3-1
- Fees under the law
- To provide a loan, merchants and licensees must not hold checks for future deposit; regulated consumer loans not exceeding $3,500 carry a maximum yearly rate of 31 percent on unpaid principal.
- Installment lending limits
- Regulated consumer lenders may charge up to 31% a year when a loan of $3,500 or less is not secured by real property, up to 27% above $3,500 and up to $15,000 (or when real property secures the loan), and up to 18% above $15,000, as W. Va. Code 46A-4-107 sets out
Also checked against dfi.wv.gov. Full statute text.
Online lenders that list West Virginia
Two companies we track say they lend in West Virginia: 1 online installment lender and 1 tribal lender.
| Lender | Kind | Posted APR |
|---|---|---|
 OppLoans | Installment | 99% to 195% |
Tribal loans in West Virginia
In 2008 the state Attorney General took online lender CashCall to court, alleging a rent-a-bank scheme meant to dodge state usury laws; a federal court returned the case to state court in 2009. No confirmed action against a tribal lender turned up in our search.
On the immunity claim tribal lenders make, see are tribal loans legal.
One tribal lender we track lists West Virginia as a state it lends in. It does not publish an APR.
| Lender | Posted APR |
|---|---|
| American Web Loan | Not published |
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West Virginia and the states around it
| State | Payday lending | Max cost | Top amount |
|---|---|---|---|
| West Virginia | Banned | None in the law | None allowed |
| Kentucky | Allowed | $15.00 per $100 borrowed | All open deferred deposit transactions together may not exceed $600 in total proceeds (the figure moves with CPI each year and can never pass $850). |
| Maryland | Banned | On the first $1,000, the rate is 2.75% monthly, or about 33% 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. |
| Pennsylvania | Banned | None in the law | None allowed |
| Virginia | Only as installments | None in the law | $2,500 |
West Virginia loans with no credit check
Installment loan rates: Regulated consumer lenders may charge up to 31% a year when a loan of $3,500 or less is not secured by real property, up to 27% above $3,500 and up to $15,000 (or when real property secures the loan), and up to 18% above $15,000, as W. Va. Code 46A-4-107 sets out.
See no credit check loans: the checks lenders still run, and the price.
Verify a lender's license in West Virginia
- Look the lender up on the license list before you hand over any bank details.
- Lenders here answer to the West Virginia Division of Financial Institutions (DFI); the Attorney General's Consumer Protection Division enforces the Consumer Credit and Protection Act.
- Had trouble with a lender? Report the lender.
Sources for West Virginia
- In West Virginia, traditional payday lenders are generally prohibited, according to DFI.dfi.wv.gov
- Merchants who cash checks cannot keep them to deposit later for a loan.; The same ban on holding checks to create loans applies to licensed check cashers.; Check cashing fees max out at $1 or 1% of the check, whichever is larger.code.wvlegislature.gov
- A yearly cap of 31% applies to regulated consumer loans that are $3,500 or less.; Loans exceeding $3,500 but not $15,000 face a 27% limit, and loans exceeding $15,000 face an 18% limit.code.wvlegislature.gov
- You need a licence from the commissioner to make regulated consumer loans.code.wvlegislature.gov
- DFI states that the amounts for regulated consumer loans went up starting June 7, 2019.; For lenders other than regulated ones and merchants, DFI lists a general cap of 18%.; Enforcement of the Consumer Credit and Protection Act falls to the Attorney General.dfi.wv.gov
- On October 8, 2008, the State filed a lawsuit against CashCall claiming a rent-a-bank scheme was used to evade usury laws.; Granting the State's motion, the federal court returned the case to state court.wvsd.uscourts.gov
- Written complaints regarding lenders under its supervision, such as finance companies, are handled by DFI.dfi.wv.gov
- The AG's Consumer Protection Division receives consumer complaints from residents.ago.wv.gov
- For the highest rate a regulated consumer lender can charge, DFI refers to Section 107.dfi.wv.gov