Louisiana payday loan laws went through their biggest overhaul in decades when Act 510 (HB 582) took effect on August 1, 2025. If you borrow in Baton Rouge or anywhere in the state, the rules that apply to your loan have changed.
Quick answer: As of August 1, 2025, Act 510 raised Louisiana's payday loan cap from $350 to $700 (inflation-adjusted to $720 through Aug 31, 2026), removed the old $45 fee ceiling while keeping the 16.75% fee limit, and barred payday lenders from reporting negative information to credit bureaus.
What Act 510 changed
- Higher cap: the maximum deferred presentment (payday) loan rose from $350 to $700, and the OFI now adjusts it annually for inflation — $720 for September 1, 2025 through August 31, 2026.
- Fee ceiling removed: the old $45 total-fee cap is gone; lenders may charge up to 16.75% of the check’s face amount plus a documentation fee.
- Credit-reporting ban: payday lenders may not report negative information about borrowers to credit bureaus.
What stayed the same
Loans still run through OFI-licensed lenders under the Deferred Presentment and Small Loan Act, rollovers remain prohibited unless 25% of principal plus fees is paid down, borrowers keep the right to request an extended payment plan in writing, and lenders still cannot pursue criminal charges over unpaid loans.
What it means for your wallet
Bigger loans are now possible, but bigger fees come with them — 16.75% of a $700 check is far more than the old $45 maximum. Compare the total repayment amount before signing, and consider cheaper alternatives first.
Frequently asked questions
Up to $700 by statute, inflation-adjusted by the OFI — $720 for the period ending August 31, 2026.
No. It removed the $45 total cap, but fees are still limited to 16.75% of the check’s face amount.
Lenders can’t report negative info to bureaus, but a debt sold to collections could still surface on your report.
Educational content, not financial advice. Always verify a lender is licensed by the Louisiana Office of Financial Institutions (OFI) before borrowing.