Payday loans in Vermont

Are payday loans legal in Vermont?

Payday loans are not legal in Vermont. 18% rate cap

The governing law is 8 V.S.A.§ 2519(a)(13). Vermont Department of Financial Regulation licenses lenders and takes complaints.

Why you will not find a licensed payday lender in Vermont

Payday loans are not legal in Vermont. 18% rate cap

A company that advertises payday loans to Vermont 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 Vermont Department of Financial Regulation. 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 Vermont

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 Vermont Department of Financial Regulation and with the CFPB. Our guide to what happens if you don’t pay covers each step.

Lower-cost options in Vermont

• 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 Vermont got here

Vermont caps small loans at 18% to 24% APR and requires a license even to solicit loans on behalf of other lenders.