Law Offices of Charles A. Maglieri
Free Consultations

What is Connecticut’s small loan law?

You may have some familiarity with the concept of payday loans, especially if you are not a native Connecticut resident and come from a state where payday loans are legal. State laws restrict payday lending to protect you and other consumers from the egregious abuses that often accompany such loans. However, as previous posts on our blog have explained, there are other ways that vulnerable consumers can be victimized by predatory lending.

You may be interested in learning about the state’s small loan law, which restricts payday lending, as the Connecticut General Assembly explains. The law works in the following ways:

  • The law prohibits the assignment of wages as loan collateral.
  • A small loan lender must be licensed with the Banking Department.
  • Interest rates on a small loan may be higher than traditional loans but are often significantly lower than astronomical payday loan rates.
  • Lenders, including credit unions, banks and pawnbrokers, can offer up to $15,000 for a small consumer loan.

In these ways, you can see how payday loans won’t work in Connecticut, although they are not specifically prohibited. This can be good news for you, as it can be easy to fall into the cycle of payday lending. It’s important to understand the basics of what makes a reputable loan, as well as how to avoid borrowing pitfalls. Since the topic of borrowing after financial challenges can be complex, the information in this blog is meant to educate you and should not replace the advice of a lawyer.

No Comments

Leave a comment
Comment Information

Discuss Your Case With A
Respected Bankruptcy Attorney

Contact my office to discuss your debt relief needs directly with me as your lawyer. I offer a free initial consultation to all new clients where you can learn more about your legal options and what I can do to help you. I am available during regular business hours and by appointment at other times. You can reach me by phone at 860-242-0574 and 860-952-3674 or via email.

My law firm is a debt relief agency as so designated by Congress in the year 2005. I help people file for bankruptcy relief under Title 11 of the United States Code, known as the Bankruptcy Code.

Schedule A Free Consultation

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Email Us For A Response

Bloomfield Office
34 Jerome Avenue
Suite 203
Bloomfield, CT 06002

Phone: 860-541-5407
Phone: 860-242-0574
Fax: 860-243-0106
Map & Directions

Marlborough Office
9 Austin Road
Suite 201
Marlborough, Connecticut 06447

Phone: 860-541-5407
Fax: 860-243-0106
Map & Directions