Massachusetts

Payday loan laws are quite different in Massachusetts. Rather than having set loan amounts, the amount that you borrow is based on your monthly income. Currently, Massachusetts allows payday loan lenders to lend up to one third of your income.

As for additional fees, a payday loan lender in Massachusetts cannot exceed 15% of the face value of the loan. The fees the lender charges must be conspicuously posted at each of the licensed locations. In addition, before the borrower receives their money they must be given a clear and separate notice that states the following:

• Payday loans should only be used for short-term cash needs.
• Payday loans are high interest loans regulated by the Division of Financial Regulation.
• Obtaining more than one payday loan at a time is not advisable and may cause you significant financial hardship.
• By law a payday lender is only allowed to set payment terms at 14 days.
• The total fees you pay must not exceed 15%.
• You have the right to redeem a payday loan check at any time before your due date.
• For defaulted checks, you can only be charged up to $25 in fees.

In Massachusetts, all written agreements must include the name of the payday lender, the date of the transaction, and the amount of the check. As stated above, the maximum term limits on any payday loan is 14 days.