Payday loans in New Jersey

Are payday loans legal in New Jersey?

Payday loans are not legal in New Jersey. 30% APR cap

The governing law is N.J. Stat. Ann. 2C: 21-19, 17:11C-36(a). New Jersey Department of Banking and Insurance licenses lenders and takes complaints.

Why you will not find a licensed payday lender in New Jersey

Payday loans are not legal in New Jersey. 30% APR cap

A company that advertises payday loans to New Jersey residents is either breaking state law or claiming that the law does not apply to it, as some online and tribal lenders do. Loans made in violation of state law may be void or uncollectable, but getting your money back can still mean a fight.

Before you deal with an online lender

1. Look the company up with New Jersey Department of Banking and Insurance. No license, no loan.
2. Never pay a fee up front to get a loan. That is the mark of an advance-fee scam.
3. Read the agreement for the finance charge, the APR and the due date before you give out bank details.

If you cannot repay a loan in New Jersey

Contact the lender before the due date and ask for a payment plan in writing. If a lender or collector breaks the rules, file a complaint with New Jersey Department of Banking and Insurance and with the CFPB. Our guide to what happens if you don’t pay covers each step.

Lower-cost options in New Jersey

• Credit union payday alternative loans (PALs): $200 to $2,000 at no more than 28% APR.
• A payment plan with the landlord, utility or hospital you owe often costs nothing.
• Local assistance: dial 211 for rent, utility and food programs near you.

See all payday loan alternatives or work out a loan’s price with the cost calculator.

How New Jersey got here

New Jersey’s criminal usury law caps interest at 30% a year, and check cashers may not advance money on postdated checks.