PaydayLoan.Help
Menu

Connecticut · checked October 24, 2026

Payday loans in Connecticut: the rules and your way out

Typical payday loans not allowed

Connecticut has no payday loan statute: any loan of $50,000 or less above 12% APR requires a small loan license, licensed loans under $5,000 are capped at 36% APR all-in (Military Lending Act method), and a non-conforming loan is void.

Law: Conn. Gen. Stat. §§ 36a-555 to 36a-574 (small loan lending), esp. §§ 36a-555, 36a-556, 36a-558, as amended by P.A. 23-126 and P.A. 25-155. Connecticut General Statutes, revised to January 1, 2025 (cga.ct.gov/current) and 2026 Supplement revised to January 1, 2026 (reflecting 2025 session acts), read 2026-10-24

Connecticut's rules, line by line

Fee or rate cap
For a small loan under $5,000, an APR that exceeds the lesser of 36 per cent or the Military Lending Act maximum is prohibited; for loans between $5,000 and $50,000, an APR above 25 per cent is prohibited (Conn. Gen. Stat. § 36a-558(d)(1)). APR is calculated under the Military Lending Act and includes every finance charge, ancillary product and fee (§ 36a-555).
State loan database
No
Limits on collection
A small loan that contains any term inconsistent with § 36a-558(d)-(g) (for example, an APR over the cap) "shall be void and no person shall have the right to collect or receive any principal, interest, charge or other consideration thereon" (Conn. Gen. Stat. § 36a-558(c)(1)). For licensed small loans: returned-payment fee no more than $20 total; late fee only after 10 days, capped at the lesser of 5% of the installment or $25 a month (§ 36a-558(e)); no prepayment penalty and no rate increase on default (§ 36a-558(d)). The Department of Banking says it treats payday lenders as unlicensed small loan lenders and that such loans are void and unenforceable.
Other rights
Licensed small loans may not include a class-action waiver or a clause forcing claims into a non-judicial forum that limits borrower claims (Conn. Gen. Stat. § 36a-558(d)(8)).

If you are behind on a payday loan in Connecticut

  1. Check whether the loan was legal to make. Connecticut does not allow payday loans at typical payday prices. If a lender charged more than the state's limit, report it to the Connecticut Department of Banking, Consumer Credit Division through its complaint page.
  2. Stop the automatic withdrawals if they are emptying your account. You can revoke the lender's permission to debit your account and tell your bank. How to do it.
  3. Look at a credit union payday alternative loan. Federal credit unions can lend $200 to $2,000 at much lower cost. How they work.
  4. Talk to a nonprofit credit counselor. A counselor can look at all your bills, not just this one. How to find a real one.

Check a lender, or report one

Sources

This page summarizes the law; it is not legal advice. Laws change, and the statute and regulator control. If something here is out of date, write to hello@paydayloan.help.

You do not have to sort this out alone

A nonprofit credit counselor can look at the whole picture with you.

Ask for help