States that have made payday loans illegal by internet and shop are very few. This means that they are unable to practice in storefront, or give out loans to residents of their state. There are two states that have made online payday loans very restrictive, and interest rates that are offered have to be lower. Below are lists of the states that have banned internet payday loans.

There is a lot of controversy surrounding making payday loans illegal even in the states where it is banned. Although people can still access loans online, it is not advised as legitimate companies will not offer loans to people when it is illegal in their state. Companies that have banned payday lending in their state are; North Carolina, Georgia,   Massachusetts, New Jersey, West Virginia, Vermont, New York, Connecticut, and Maryland. States that internet lending itself is not legal are; Iowa, Virginia, and states that allow it but have restricted terms are; New Hampshire and Ohio.

Some of these states don’t have laws specifically stating that internet payday loans are illegal. Although, licensure is required in order to offer cash advance loans in those states and store fronts are illegal. Since none of the online companies can obtain licensure in the state since it is illegal, it means that they cannot give out loans online.

While the list of states that ban lending is very small it can stop people from getting the assistance they need.  There is a lot of controversy surrounding banning payday loans because of the hardship it can put low-income people through when they need help. Credit service organizations can help people in their time of need, and are often like pay day loans. Even though payday loans are illegal in some states, credit service organizations are not.