Consumer protections, interest rate limits, and safer borrowing alternatives
This guide provides general information about payday loan regulations in Massachusetts. Laws and regulations can change. For the most current information, contact the Massachusetts Department of Financial Institutions, Attorney General's Office, or a qualified legal professional.
Payday loans are short-term, high-interest loans typically due on your next payday. In Massachusetts, these loans are regulated by state law to protect consumers from predatory lending practices. Understanding your rights and the regulations governing payday loans can help you make informed borrowing decisions.
Massachusetts has established specific rules regarding maximum loan amounts, interest rates, fees, repayment terms, and rollover restrictions. These regulations are designed to prevent borrowers from becoming trapped in cycles of debt.
No payday product; Small Loan Act applies to loans of $6,000 or less
Massachusetts sets specific limits on payday loan amounts to prevent excessive debt burdens on borrowers.
23% APR (plus a $20 administrative fee) under Small Loan Act
Finance charges: Bounded by 23% APR cap (209 CMR 26.00). Understanding these limits helps you identify predatory lenders.
Min: Not applicable (no payday product) / Max: Not applicable (no payday product)
Massachusetts specifies these loan term limits. Longer repayment periods can help reduce the financial burden.
Not applicable
Statute of limitations: 6 years for written contracts (20 years if under seal) - Mass. Gen. Laws ch. 260, 2. Massachusetts has regulations to prevent borrowers from becoming trapped in cycles of debt.
As a payday loan borrower in Massachusetts, you have important rights:
Before taking out a payday loan, consider these safer, more affordable alternatives available in Massachusetts:
If you have questions about payday loan regulations or need to file a complaint, contact these Massachusetts agencies:
Payday loans are regulated in Massachusetts. The maximum loan amount is No payday product; Small Loan Act applies to loans of $6,000 or less with interest rates of 23% APR (plus a $20 administrative fee) under Small Loan Act. The Massachusetts Division of Banks oversees payday lending in the state. All payday lenders must be licensed and comply with state regulations.
In Massachusetts, the maximum interest rate for payday loans is 23% APR (plus a $20 administrative fee) under Small Loan Act. Finance charges are Bounded by 23% APR cap (209 CMR 26.00). Contact the Massachusetts Division of Banks for the most current rate information.
Many states, including Massachusetts, have restrictions on the number of payday loans you can have simultaneously. Some states use database systems to track outstanding loans and prevent multiple concurrent loans. Check your state's specific regulations or consult with a financial advisor.
Safer alternatives include credit union Payday Alternative Loans (PALs) with APRs capped at 28%, personal installment loans with longer repayment terms, payment plans negotiated with creditors, emergency assistance programs from local nonprofits, employer cash advances, and side income from gig work.
You can file complaints with the Massachusetts Department of Financial Institutions, the Massachusetts Attorney General's Office, or the federal Consumer Financial Protection Bureau (CFPB). Document all interactions with the lender, keep copies of loan agreements, and gather evidence of any violations before filing your complaint.
This information is provided for educational purposes only and does not constitute legal advice. Payday loan laws and regulations in Massachusetts are subject to change. For the most current information about Massachusetts payday loan regulations, consult with a qualified attorney, contact your state's regulatory agencies, or visit official government websites. Fast Fair Loans is not a lender and does not provide legal advice.