Act 510 Louisiana is the 2025 law that reshaped payday lending statewide. It passed the House 87–0 and became law without the Governor’s signature, taking effect August 1, 2025.
Quick answer: Act 510 (HB 582 of 2025) doubled Louisiana's maximum payday loan from $350 to $700, told the OFI to adjust the cap yearly using the Consumer Price Index (currently $720), scrapped the $45 fee ceiling, and prohibited payday lenders from reporting negative borrower information to credit bureaus.
The three big changes
- $350 → $700: the maximum deferred presentment transaction doubled, with the OFI publishing an annual inflation-adjusted figure each year (rounded up to the nearest $10). It’s $720 through August 31, 2026; small loans are capped at $360.
- Fee cap repealed: the $45 maximum total fee is gone. The 16.75%-of-face-amount limit remains, so a larger loan now legally carries a larger fee.
- No negative credit reporting: payday lenders can’t report late or missed payments to the bureaus.
Winners and trade-offs
Borrowers who genuinely need more than $350 gain access without stacking loans. The trade-off: on a $700 loan, 16.75% is roughly $117 in fees — more than double the old ceiling — so the cost of borrowing at the top of the range rose sharply.
How to borrow smart under Act 510
Take the smallest amount that solves your problem, get the total repayment figure in writing, and remember your written right to an extended payment plan if repayment gets tight.
Frequently asked questions
August 1, 2025.
The law requires annual CPI adjustment; the OFI set $720 for September 2025–August 2026.
No — it covers deferred presentment (payday) and small loans; other products follow the Louisiana Consumer Credit Law.
Educational content, not financial advice. Always verify a lender is licensed by the Louisiana Office of Financial Institutions (OFI) before borrowing.