Connecticut and payday loans fall into a grey area when it comes to being legal and being recognized as a legitimate business.
Connecticut has always been non-committal when it comes to these kinds of laws.
They sort of allow them online but do not authorize them and now I bet you are just as confused as we were when we started researching this article!
Hang tight and stay with us, we can explain!
Connecticut Payday Loan Laws
While Connecticut does not specifically address payday loans they do have small loan laws and usury laws that cap interest at 12% and limit the kinds of laws allowed and who are allowed to issue them.
The usury laws that cap interest make it not practical for payday loan lenders to do business in this state as it does limit the number of profits these loans are known for.
They also limit the types of collections allowed for loans that are in default.
You must be a licensed banker to give loans in Connecticut and you must follow all small loan laws in this state, and this does not work with payday loans, thus they really are not pursued in the brick and mortar storefronts.
Online Payday Loans In Connecticut
While the laws that cover brick and mortar storefronts also apply to online payday loans you can still take them out in this and any other state regardless of the state laws.
There are more online loan companies than you can count that are willing to disregard the state laws due to the number of profits to be had by taking the risk, and many of these companies are offshore and untouchable by US law.
It is strongly recommended to avoid these online loans as they are huge payday loan traps and they are out to take as much as your money as possible!
Remember that online loan companies work differently in their collection procedures than the storefront loan companies do.
To find out the differences, read our article; “Are online payday loans safe?”
If you have been hooked by these online companies please give us a call toll-free at 1-877-280-5100 and we can show you how we deal with them!
It is always best to avoid any kind of payday loans whenever possible and we understand there are times when options are few so we have created an article explaining how to use payday loans.
We have covered everything you need to know about Connecticut and payday loans and we hope this helps you in any dealings you may have with these types of loans and debt.
We always want to hear from you!!
If you have any questions and or comments please leave them in the comments section below and we will address them promptly.
If you need immediate help with payday loan debt in Connecticut or any other state please give us a call toll-free at 1-877-280-5100!