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Pennsylvania · checked October 24, 2026

Payday loans in Pennsylvania: the rules and your way out

Typical payday loans not allowed

Pennsylvania has no payday lending law: unlicensed lenders are held to a 6% interest limit on loans of $50,000 or less, licensed consumer discount companies are held to far lower rates than payday fees, and check cashers may not advance money on postdated personal checks.

Law: Loan Interest and Protection Law, Act of Jan. 30, 1974, P.L. 13, No. 6 (41 P.S. 101 et seq.), esp. sections 201, 501-506; Consumer Discount Company Act, Act of Apr. 8, 1937, P.L. 262, No. 66 (7 P.S. 6201 et seq.), esp. sections 13, 17.1, 18; Check Casher Licensing Act, Act of Feb. 18, 1998, No. 22 (63 P.S. 2301 et seq.), section 505. Unconsolidated statutes on palegis.us (PA General Assembly), read 2026-10-24; LIPL 201 and 505 last amended July 8, 2008 (P.L. 824, No. 57); CDCA section 13(E) last amended 1996 and 13(F) 1998; Check Casher Licensing Act section 505 as shown in the current act text

Pennsylvania's rules, line by line

Fee or rate cap
Loan Interest and Protection Law: "the maximum lawful rate of interest for the loan or use of money in an amount of fifty thousand dollars ($50,000) or less in all cases where no express contract shall have been made for a less rate shall be six per cent per annum", except as Article III provides (41 P.S. 201(a)). Lenders licensed under the Consumer Discount Company Act may charge, on loans up to $25,000, discount of no more than $9.50 per $100 per year plus a service charge capped at $150, or alternatively up to 2% per month on the unpaid balance (CDCA sections 13(E)-(F), 17.1(A)).
Payment plan if you cannot pay
No. Pennsylvania has no payday lending statute and no payday extended payment plan.
State loan database
No.
Limits on collection
A borrower need not pay interest above the lawful maximum and may deduct the excess from the debt after giving the creditor notice (41 P.S. 501). A borrower who paid excess interest or prohibited charges can sue to recover three times the excess, within four years of payment (41 P.S. 502), plus costs and reasonable attorney's fees if the borrower prevails (41 P.S. 503). Knowing and intentional violations are a third-degree misdemeanor, and DoBS may fine $10,000 per offense (41 P.S. 505). Making loans of $25,000 or less without a CDCA license at more than the lender could otherwise charge is a misdemeanor punishable by a fine of $500 to $5,000 and/or 6 months to 3 years in prison (CDCA section 18).
Other rights
Licensed check cashers may not cash or advance any money on a postdated personal check (postdated government, government-assistance or payroll checks dated no more than five days ahead are allowed) (Check Casher Licensing Act, section 505). Borrowers can complain to the Department of Banking and Securities Consumer Help Center at 1-800-PA-BANKS (722-2657); DoBS says the usury law 'has effectively kept predatory payday loans with sky-high interest rates out of our state.'

If you are behind on a payday loan in Pennsylvania

  1. Check whether the loan was legal to make. Pennsylvania does not allow payday loans at typical payday prices. If a lender charged more than the state's limit, report it to the Pennsylvania Department of Banking and Securities (DoBS) 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.

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