Vermont · checked October 24, 2026

Payday loans in Vermont: the rules and your way out

Typical payday loans not allowed

Vermont has no payday statute: anyone in the business of lending needs a state license, licensed lenders are held to Vermont's usury limits (12% generally, 18% for single-payment loans by Title 8 lenders), and loans over those limits cannot be enforced in Vermont.

Law: 8 V.S.A. §§ 2201, 2233; 9 V.S.A. § 41a; 9 V.S.A. § 2481w. Vermont Statutes Online, which state they include the actions of the 2026 session (accessed 2026-10-24).

Vermont's rules, line by line

Fee or rate cap: Legal rate 12% a year unless law provides otherwise; single-payment loans by lenders regulated under Title 8: finance charge may not exceed 18% a year; installment loans not otherwise covered: 24% on the first $1,000 and 12% above, or 18% APR on the whole balance, whichever is higher (9 V.S.A. § 41a).
State loan database: No.
Limits on collection: No loan for which more than the rate authorized by 9 V.S.A. § 41a or § 46 was charged, contracted for, or received 'shall be enforced in this State' (8 V.S.A. § 2233(a)).
Other rights: Lenders soliciting or making loans to Vermont residents by mail, phone or electronic means must be licensed (8 V.S.A. § 2233(b)). Soliciting or making a loan without complying with 8 V.S.A. ch. 73, or processing payments for such a loan, is an unfair and deceptive act under the Consumer Protection Act (9 V.S.A. § 2481w).

If you are behind on a payday loan in Vermont

Check whether the loan was legal to make. Vermont does not allow payday loans at typical payday prices. If a lender charged more than the state's limit, report it to the Vermont Department of Financial Regulation, Banking Division 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

8 V.S.A. § 2233, read 2026-10-24
8 V.S.A. § 2201, read 2026-10-24
9 V.S.A. § 41a, read 2026-10-24
9 V.S.A. § 2481w, read 2026-10-24
VT DFR, Verify a License, read 2026-10-24
VT DFR, Banking Complaints, 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.