Payday Loans Laws, New Jersey (NJ)

The state of New Jersey considers payday loans illegal since it goes against the existing cash checking laws. Nevertheless, if you still want to avail of a payday loan then apply online as no law prohibits borrowing from online payday lender.

Short team loans or cash advance according to the state of New Jersey is illegal, so if you are a resident then apply online to avail of payday loans, as there is no need to provide checks, so it does not coincide with the check cashing laws.

What Is The Check Cashing Law

The law prohibits check encashment when one does not have an existing checking account under their name at a particular bank or where the check is drawn. This policy goes against local payday lenders that issue checks to their clients, making payday lending locally illegal but not online where everything done electronically including fund transfer and payment.

Usury Laws

$100 up to $2000

The New Jersey usury law is another roadblock as why payday lending locally is impossible and make the practice illegal. The state limit the interest of loans to just 30% per annual, which is about 250% to 600% APR and payday lenders charges their clients more than the maximum limit imposed by the state.

Are There Storefront Payday Lenders In New Jersey?

Yes, payday lenders that operate locally charge their interest as fees, so they can collect the same amount of interest without violating the state usury law. This is legal, so there is no problem, but if you prefer a more hassle free service, then obtaining a payday loan online is even more highly recommended.

Interest Fees Limit

Payday lenders operating in New Jersey cannot lend more than $2500 at any one time; they are also not allowed to provide loans to someone who defaults on payday loans three times in one year.

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