Two different claims. The first means a person traced every figure on this page to the regulator, the statute or a court — each one cited inline, click any marker to open the source. The second is automated: our monitor confirms daily that those sources still resolve and still contain the text we cite them for. Only a person moves the first. Only the monitor moves the second.
Effectively prohibited. New Jersey’s criminal usury limit is 30% — and check cashers are separately barred from advancing money on a post-dated check.
New Jersey criminal usury — N.J.S.A. 2C:21-19
The Department of Banking and Insurance sets it out plainly: the civil usury rate is anything above 6% where there is no written agreement, or above 16% where a written contract specifies the rate. The criminal usury limit is 30% for non-corporate borrowers and 50% for corporations.New Jersey · RegulatorNJ Dept. of Banking and Insurance — the civil usury rate is any rate greater than 6 percent without a written agreement and greater than 16 percent with one; the criminal usury limitation is 50 percent for corporations and 30 percent for non-corporate borrowers
A payday loan at a typical rate sits an order of magnitude above that line. Separately, N.J.S.A. 17:15A-47 bars check cashers — licensed or not — from advancing money on a post-dated check, which removes the mechanism the product depends on.
N.J.S.A. 2C:21-19 (Wrongful Credit Practices) · N.J.S.A. 17:15A-47 · Consumer Finance Licensing Act
DOBI has stated that although few payday lenders operate storefronts in New Jersey, residents can still be victimised by internet-based lenders located outside the state.New Jersey · RegulatorNJ Dept. of Banking and Insurance — even though few payday lenders operate in storefronts in New Jersey, residents can be victimized by internet-based lenders located outside the state's borders
If you are being charged a triple-digit rate in New Jersey, the loan is almost certainly outside the criminal usury limit. Report it to DOBI on 1-800-446-7467, and speak to a legal aid office before deciding what to do about the debt.
You can revoke authorisation and instruct your bank to stop the payment, whatever your agreement says.
What Regulation E says about automatic payments →
Every figure carries the jurisdiction and the exact provision it came from. Click to open the source.
A payday loan is a consumer debt. If it goes unpaid, two New Jersey rules decide what a lender can do next: how long it has to sue you, and how much of your pay a court can order taken.
Being sued over an old payday loan? A collector can still file, but the time limit is a defence you can raise — and you cannot be jailed for the debt. What can and cannot happen if you don’t pay →