The Best Loans in Massachusetts 2022: Compare Rates

There are various laws governing the function of small loan providers in the state of Massachusetts. A rate cap applies, prohibiting a lender from charging more than 23% interest plus $20 in administrative fees on small loans.

The essential Massachusetts payday loans laws read the following:

• Payday lending is generally considered illegal in the entire state
• Any similar lending business are restricted in their operation
• Banks and out-of-state payday companies are prohibited from cooperating
• The state monitors and controls fees and charges
• Lenders are not allowed to charge more than 23% of the loan

Legal Application Process for Lenders

Each applicant must submit an application with the division and demonstrate that the business has a net worth of more than $75,000. The applicants must provide financial statements of the previous year, edited by a certified public accountant.

Other information required may include:

• Character and fitness certificate
• Educational background
• Background of management of employees
• Business experience letters

Small loan providers who have been authorized to do business must keep a record of all the accounts and information. Any other significant events such as bankruptcy should be well communicated by the licensee to the commission.