Skip to content
Lendmira

Payday allowed

Borrowing in Louisiana: What State Law Allows

Louisiana allows payday loans, and a 2025 law roughly doubled how much you can borrow while removing the old dollar cap on fees. Here is how the current rules work and what protections remain.

By Lendmira Editorial Team Updated 6 min read

Payday loans
Allowed, up to $740
Payday fee cap
16.75% of the check
Consumer loan cap
36% a year on first $1,400
Card debt time limit
3 years
Map of the United States with Louisiana highlighted

The short version

Louisiana payday lenders can charge a fee of up to 16.75% of the check's face amount. Since August 1, 2025, the borrowing limit for check-backed loans is tied to inflation: $740 in outstanding principal from September 1, 2026, through August 31, 2027, and the old $45 fee cap is gone. Licensed consumer lenders are held to 36% a year on the first $1,400, with lower rates above that. Lawsuits on open accounts, such as credit cards, must be filed within three years.

Louisiana lending rules at a glance

Payday loans Allowed Check loans up to $740 principal (Sept 2026–Aug 2027); fee up to 16.75% of the check; held up to 30 days
Car title loans Not available
Rate limit on small loans Consumer loans: 36% a year on first $1,400, stepping down to 21% over $7,000
Time limit to sue on a debt 10 years written contract 3 years for credit card debt
Wage garnishment 75% of weekly disposable pay exempt, never less than 30× federal minimum wage
Lender licensing and complaints Louisiana Office of Financial Institutions · Look up a lender on NMLS

What changed for payday loans in 2025

Louisiana's Deferred Presentment and Small Loan Act covers two products. A deferred presentment transaction is the classic payday loan: you write a check, and the lender agrees to hold it for up to 30 days. A small loan is a short loan of up to 60 days without the check. Act 510 of 2025, effective August 1, 2025, changed both.

Louisiana payday rules before and after Act 510 of 2025
RuleBefore August 1, 2025Now
Check-backed loan limit$350$700 in the law, adjusted for inflation each year
Outstanding principal cap, Sept. 2026 to Aug. 2027Not indexed$740 check-backed; $370 small loan
Fee16.75% of the check, no more than $4516.75% of the check, no dollar cap
Negative credit reportingAllowedBanned

The Office of Financial Institutions (OFI) publishes the new inflation-adjusted cap by September 1 each year. Because the fee is now a straight percentage of the check, larger loans cost more in dollars. On a $600 check, the fee can be about $100, and you'd receive about $500. Over two weeks that's an APR above 500%. The law also bars payday lenders from reporting negative information about you to credit bureaus, but an unpaid loan can still be sent to collections or taken to court.

Renewals, partial payments and the payment plan

  • No straight rollovers. A lender can renew a loan only after you pay 25% of the amount advanced plus the fees; the remaining balance becomes a new loan with a new fee.
  • Partial payments count. A lender must accept a partial payment of $50 or more.
  • No criminal threats. A lender can't threaten to prosecute you or refer a bounced check for prosecution.
  • No collateral. A payday lender can't take an interest in your property, including your car.
  • Payment plan. OFI requires every payday contract to include an extended payment plan. Ask how it works before you sign, not after you've missed the due date.

Rate limits for installment and title loans

Other consumer loans from licensed lenders fall under the Louisiana Consumer Credit Law. R.S. 9:3519 sets tiered ceilings on the unpaid principal:

Maximum yearly rates on Louisiana consumer loans (R.S. 9:3519)
Part of the balanceMaximum rate
Up to $1,40036%
$1,400.01 to $4,00027%
$4,000.01 to $7,00024%
Over $7,00021%

On top of interest, a lender can charge a minimum finance charge on very small loans ($15 if you get $200 or less, $25 above that), and since August 1, 2026, an origination fee of up to $75, up from $50. Louisiana has no separate law authorizing triple-digit car title loans, so a loan secured by your car from a licensed lender is held to these ceilings. Use the APR calculator to see how fees change the true cost.

Time limits for lawsuits and wage protection

Louisiana calls the statute of limitations "prescription," and the period depends on the type of debt:

Three years

Open accounts, including most credit card debt, and actions on money lent (Civil Code art. 3494).

Five years

Promissory notes and other negotiable or nonnegotiable instruments (art. 3498).

Ten years

The default for other personal actions, including many written contracts (art. 3499).

A personal loan signed with a promissory note usually falls under the five-year rule. If you're not sure which period applies, read how statutes of limitations work before you pay or sign anything about an old debt.

For wage garnishment, R.S. 13:3881 exempts 75% of your weekly disposable earnings, and never less than 30 times the federal minimum wage. That matches the federal limit. Child support and spousal support orders can take more.

Where to check a lender and complain

  1. Confirm the license. OFI licenses payday lenders and consumer lenders, and each license covers a single physical location. Check NMLS Consumer Access.
  2. Keep records of the check or debit authorization, the fee, the due date and every payment.
  3. File a non-depository complaint with OFI online, or call (225) 925-4660. You can also complain to the CFPB.
  4. Learn your rights with collectors in debt collectors and your rights.

Common questions

Are payday loans legal in Louisiana?

Yes. Licensed lenders can charge up to 16.75% of the check's face amount. For September 1, 2026, through August 31, 2027, outstanding principal is capped at $740 on check-backed loans and $370 on small loans.

What is the maximum payday loan in Louisiana?

Act 510 of 2025 raised the limit from $350 to $700 and indexed it to inflation. OFI's cap for September 2026 through August 2027 is $740.

Are title loans legal in Louisiana?

Payday lenders can't take your car as collateral, and no law authorizes high-cost title loans. A car-secured loan from a licensed consumer lender is limited to 36% a year on the first $1,400, with lower rates above that.

How long can a creditor sue me for credit card debt in Louisiana?

Generally three years, because card debt is usually an open account. Promissory notes have five years, and other personal actions have ten.

Sources

Facts on this page were checked against these sources on October 13, 2026. OFI resets the payday principal cap every September 1, so check its notice for the current figure.

Keep reading