Payday Lenders in Vermont

Payday Loans are NOT Legal in Vermont

Beware of predatory lending

Payday Lenders in Vermont

In the state of Vermont, payday loans, often referred to as short-term, high-interest loans, are illegal under the Small Loan Act.

This regulation, enacted by the Vermont Legislature, prohibits lenders from offering payday loans with exorbitant interest rates and predatory terms. As a result, Vermont residents are spared from the burden of exorbitant fees and interest rates that can trap borrowers in debt. According to the Vermont Department of Financial Regulation, there were zero licensed payday lenders in the state as of the latest data available.

However, despite the legal restrictions in place, residents of Vermont must beware of potential scams, particularly from online lenders. Predatory online lenders often attempt to target vulnerable individuals through deceptive practices, enticing them with quick and easy loan approvals. It is crucial for borrowers to exercise caution when dealing with online lenders and to thoroughly research and verify the legitimacy of any lending institution. Vermont had a total of 82 reported cases of fraud related to online loans, resulting in a total loss of over $200,000. Being aware of the risks and being proactive in verifying the authenticity of lenders can help residents of Vermont protect themselves from falling victim to payday loan scams.

Payday Loan Laws

The Vermont Statutes Title 9, Chapter 41, Subchapter 2A, Section 41a-101 et seq., known as the Vermont Consumer Protection Act, explicitly prohibits any form of payday lending. This legislation establishes comprehensive regulations to safeguard consumers from the predatory practices associated with payday loans. It sets strict limits on interest rates and fees that lenders can charge, ensuring that Vermont residents are not subjected to exploitative lending practices. As a result, payday loan businesses are effectively banned from operating in Vermont.

Loan Terms and Conditions


Whenever you need emergency financing, you can get loans online from a legit lending companies. Check your rates and terms before applying for cash advance online.

History of Vermont Payday Loans

In the year 2001, Vermont took a firm stance against payday lending, effectively making it illegal within the state under Section 2519(a)(13) of the Vermont Statutes Annotated. Notably, in May 2012, the Vermont Legislature implemented groundbreaking measures by extending consumer protection laws specifically to cover payday loans, setting a precedent that was unmatched at the time. This significant step entailed classifying all unlicensed lending as an “unfair and deceptive act and practice,” constituting a direct violation of the Vermont Consumer Protection Act. Moreover, the legislation criminalized financial processing on behalf of unauthorized lenders, and any form of substantial assistance rendered to such lenders was deemed in violation of the Consumer Protection Act. As of today, payday loans remain strictly prohibited in Vermont by law, serving as a testament to the state’s commitment to consumer welfare and robust regulatory framework.

How to file a complaint

Complaints against payday lenders can be by submitting on online form through the Department of financial regulation.

Vermont Loans Debt Relief

How to Get out of Loan Debt?

Escaping the burden of loan debt in Vermont requires careful planning and disciplined financial management. Start by creating a budget that outlines your income and expenses, enabling you to identify areas where you can cut back and allocate more funds towards debt repayment. Consider reaching out to your lenders to negotiate lower interest rates or more flexible repayment terms. Exploring debt consolidation options may also be beneficial, allowing you to combine multiple debts into a single, more manageable payment. Additionally, seek guidance from credit counseling agencies or financial advisors who can provide expert advice on debt management strategies. It’s important to stay committed to your repayment plan and avoid taking on new loans or incurring further debt. With patience and determination, you can regain control of your finances and work towards a debt-free future.

Types of Quick Loans in Vermont

Alternatives to Payday Loans in Vermont

Personal Loans

Personal loans provide a versatile financial solution for various purposes in Vermont, such as consolidating debt, funding home improvements, or covering unexpected expenses. Unlike secured loans, personal loans in Vermont are typically unsecured, relying on the borrower's credit rating for approval. The interest rates of personal loans vary based on factors like income and credit scores. Banks, credit unions, and online lenders serve as potential sources for obtaining personal loans, making it essential to compare rates and fees to ensure compatibility with the borrower's financial situation.

Land Loans

Land loans in Vermont offer financing options for individuals looking to purchase or refinance land, whether for residential or agricultural purposes. These loans are specifically designed to provide funds for acquiring undeveloped property, allowing borrowers to fulfill their dreams of building a home or starting a farm. Land loans typically come with shorter repayment terms and higher interest rates compared to traditional mortgages. Lenders may require a substantial down payment and thorough evaluation of the property's value and potential use. Vermont residents seeking land loans should carefully consider their financial capabilities and explore lenders that specialize in this type of financing to secure the best terms and maximize their investment opportunities.

Construction Loans

When it comes to construction projects in Vermont, construction loans offer short-term financing to cover material costs, labor expenses, and other construction-related expenditures. Lenders may have varying terms and conditions, often requiring a minimum of 20% down payment upfront. Eligibility for construction loans is determined by the borrower's creditworthiness and ability to repay the loan on time, highlighting the importance of maintaining a favorable credit history.

Bad Credit Loans in Vermont

Vermont residents with bad credit can explore bad credit loans tailored to their specific needs. These loans are designed for individuals with low credit scores or limited credit histories. Due to the higher associated risks, lenders may impose higher fees and interest rates, and the loan amounts may be relatively smaller. While secured bad credit loans may require collateral such as a vehicle or savings account, unsecured options do not have such collateral requirements. It is crucial for borrowers with poor credit to carefully compare fees and terms to ensure they can manage the costs effectively.

Vermont Small Business Loans

Vermont provides several types of small business loans with different requirements and terms:

  • SBA loans: Loans that are backed by the U.S. Small Business Administration, which offer lower interest rates and longer repayment terms than conventional loans.
  • Vermont Economic Development Authority (VEDA) Loans: VEDA offers a range of loan programs tailored to support small businesses in Vermont, including working capital loans, equipment financing, and commercial real estate loans.
  • Vermont Small Business Investment Company (SBIC) Program: The Vermont SBIC program provides long-term debt and equity financing to small businesses in the state, typically in collaboration with private investors.
  • Business Lines of Credit: A business line of credit provides a revolving credit line that can be drawn upon as needed, up to a certain credit limit. These loans can be useful for businesses that experience seasonal fluctuations in revenue or have unpredictable cash flow.
  • Microloans: These loans are designed for small businesses that need a smaller amount of funding, typically up to $50,000. The funds can be used for working capital, equipment, inventory, and other expenses.

VA Loans in Vermont

For veterans and active-duty military members in Vermont, VA loans provide a beneficial opportunity to secure homeownership with minimal or no down payment requirements. Backed by the U.S. Department of Veterans Affairs, VA loans offer advantages like lower interest rates and the exclusion of private mortgage insurance. Furthermore, these loans feature more flexible qualification criteria, making them accessible to individuals who may face challenges meeting traditional loan standards. To qualify for a VA loan, borrowers must meet specific service requirements and hold a valid Certificate of Eligibility.

Vermont Student Loans

Many options are available to Vermont students to help finance their college education. These options include:

  • Federal Student Loans: Loans provided by the federal government offering low-interest rates and flexible repayment plans.
  • Vermont Advantage Loans: The Vermont Student Assistance Corporation (VSAC) provides Vermont residents with low-cost fixed-rate loans for higher education. Options include the Vermont Advantage Student Loan and the Vermont Advantage Parent Loan.
  • Vermont College Savings Plan: While not a traditional loan, the Vermont College Savings Plan (529 Plan) allows families to save and invest money for educational expenses. The funds can be used for qualified higher education expenses, including tuition, fees, and books.
  • Private Student Loans: Loans from private lenders, they commonly have higher interest rates and may require a co-signer.

Vermont Income Information

According to the 2021 U.S. Census, Vermont had a median household income of $67,674, significantly lower than the national median of $69,021. Vermont’s economy is characterized by its diverse sectors, including agriculture, tourism, manufacturing, and technology, contributing to its overall resilience and stability. The state’s emphasis on sustainability and local businesses, combined with its picturesque landscapes and vibrant cultural scene, attracts both residents and visitors, fostering economic growth and creating a unique entrepreneurial spirit. The poverty percentage in Vermont in 2021 was 10.3%. Median household income and poverty levels vary significantly by county in Vermont, with Addison County having the highest median income at $70,262, and Essex County having the lowest at $47,035.

United States Census Bureau. “Poverty in the United States: 2021.” Accessed on May 12, 2023.
United States Census Bureau. U.S. Census Bureau QuickFacts: Vermont. Accessed on May 12, 2023.

Vermont Payday Lender Complaints

Below are trends associated with the top payday lenders in Vermont, as reported to the Consumer Financial Protection Bureau.
Total Complaints 5

Consumer Financial Protection Bureau. Consumer Complaint Database. Accessed on May 12, 2023.

Most Common Issues

Charged unexpected interest or fees


Can’t contact lender


What are the main reasons Americans apply for payday cash advance online or offline

Payday loans are typically used for nonnegotiable everyday expenses like your rent, utilities, and groceries. Per data reported by Pewtrust, the percentage of reasons described below

Regular Expenses (Utilities, car payment)


Unexpected emergency/expense




Something Special




Did not answer


Payday Lenders by City

Frequently Asked Questions

Are online payday loans legal in Vermont?

No, online payday loans are not legal in Vermont. Payday lending is prohibited in the state under Vermont law.

Can I get a payday loan from a tribal lender?

No, tribal lenders are also prohibited from offering payday loans in Vermont. The state law applies to all payday lenders, regardless of their affiliation.

Are there any exceptions to the payday loan ban?

No, there are no exceptions to the payday loan ban in Vermont. The law applies to all lenders and borrowers in the state.

Can I take out a payday loan from a neighboring state if I live?

No, it is not permitted to take out a payday loan from a neighboring state if you live in Vermont. The state’s payday loan ban applies to all residents regardless of where the loan is obtained.

What are the consequences for payday lenders operating illegally?

Payday lenders operating illegally in Vermont may face legal consequences and penalties, including fines and other enforcement actions taken by the state’s regulatory authorities.

What should I do if I have been a victim of a payday loan scam?

If you have been a victim of a payday loan scam in Vermont, it is important to report the scam to the Vermont Department of Financial Regulation. You should also contact local law enforcement and consider seeking legal assistance to protect your rights and recover any losses.
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