New Jersey · checked October 24, 2026

Payday loans in New Jersey: the rules and your way out

Typical payday loans not allowed

New Jersey has no payday lending law, bars licensed check cashers from making loans, and makes it criminal usury to lend to an individual at more than 30% a year, so payday loans are illegal there, including online ones.

Law: N.J.S. 2C:21-19 (criminal usury); N.J.S.A. 31:1-1 (civil usury); N.J.S.A. 17:11C-1 et seq. (New Jersey Consumer Finance Licensing Act, esp. 17:11C-3, -32, -33); N.J.S.A. 17:15A-47 (check casher prohibitions). New Jersey General and Permanent Statutes, official NJ Legislature text file 'updated through P.L.2026, c.50, and J.R.1' (file dated 2026-10-24)

New Jersey's rules, line by line

Fee or rate cap: Criminal usury: "any loan or forbearance with an interest rate which exceeds 30% per annum shall not be a rate authorized or permitted by law" (50% for loans to corporations, LLCs and LLPs), notwithstanding any law allowing a rate agreed by the parties (N.J.S. 2C:21-19(a)). Civil usury: $6 per $100 per year, or $16 per $100 per year with a written contract specifying the rate (N.J.S.A. 31:1-1(a)). Licensed consumer lenders may charge an agreed rate on loans up to $50,000 (N.J.S.A. 17:11C-32), still subject to the 30% criminal usury limit.
Payment plan if you cannot pay: No. New Jersey has no payday lending statute and no payday extended payment plan.
State loan database: No.
Limits on collection: Lending to an individual above 30% a year is criminal usury: a second-degree crime above 50%, third-degree for loans over $1,000, otherwise a disorderly persons offense; knowingly running a business of such loans is a second-degree crime (N.J.S. 2C:21-19(a)-(b)). Sending collection papers that imitate a summons, court order or government form is a disorderly persons offense (2C:21-19(d)). Under the Consumer Finance Licensing Act, making consumer loans without a license, or charging more than allowed, is a fourth-degree crime, and the loan contract is void, so the lender may not collect principal, interest or charges, except for a good-faith error (N.J.S.A. 17:11C-3, 17:11C-33(b)). Licensed consumer lenders may charge a returned-check fee of no more than $20 (17:11C-33(a)).
Other rights: Licensed check cashers may not cash or advance money on a postdated check (with narrow next-business-day exceptions for government and payroll checks) and may not make loans or allow a loan business on the same premises (N.J.S.A. 17:15A-47(c), (e)). Borrowers can report unlicensed or usurious lenders to the Department of Banking and Insurance.

If you are behind on a payday loan in New Jersey

Check whether the loan was legal to make. New Jersey does not allow payday loans at typical payday prices. If a lender charged more than the state's limit, report it to the New Jersey Department of Banking and Insurance, Division of Banking (Office of Consumer Finance) through its complaint page.
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.
Look at a credit union payday alternative loan. Federal credit unions can lend $200 to $2,000 at much lower cost. How they work.
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

NJ Legislature, New Jersey General and Permanent Statutes, plain-text download (2C:21-19; 31:1-1; 17:11C-2, -3, -32, -33; 17:15A-47), read 2026-10-24
NJ DOBI press release, 'Christie Administration Warns Consumers to be Careful of Payday Lenders' (Apr. 8, 2013), read 2026-10-24
NJ DOBI Consumer Information and complaints, read 2026-10-24
NJ DOBI Licensee Search, read 2026-10-24

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.