Payday loan laws in Indiana
Status: Legal (24-4.5-7-101 et seq.)
For Lenders
Lending specifications:
- Maximum loan amount: $50-$500 (may not exceed 20% of borrower’s monthly gross income)
- Loan tenure: 14 days min
- Fees and finance charges: $0-$250=15%; $251-$400=13%; $401-$500=10%
- Finance charge on a 14-day $100 loan: $15
- APR on 14-day $100 loan: 390%
Collection restrictions:
- Collection fees: One $25 NSF fee; conditions apply
- Criminal procedures: Prohibited
For Borrowers
Debt limits:
- Maximum no. of outstanding loans at a time: Two (one per lender)
- Rollovers allowed: None
- Cooling-off phase: One week days after 6 consecutive loans
- Repayment plan: After 3 consecutive loans, the lender must extend a payment plan of 4 equal installments without levying any extra costs.
Complaint cell:
- Regulator: Indiana Department of Financial Institutions
- Address: 30 South Meridian St., Suite 300 Indianapolis, Indiana 46204
- Phone: 317-232-3955; (800)-382-4880
- Regulatory contact: Mark Tarpey, Supervisor, Consumer Credit
- Website: https://www.in.gov/dfi/
- File complaint: https://www.in.gov/dfi/2333.htm
- Complaint form: https://www.in.gov/dfi/files/DFI_complaint.pdf
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Please consult a qualified attorney for advice on your specific situation.
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