Oklahoma loan laws changed fundamentally when the Small Lenders Act took full effect on August 1, 2020, ending the classic two-week payday loan and replacing it with a structured installment product.
Quick answer: Since August 1, 2020, Oklahoma's Small Lenders Act replaced traditional single-payment payday loans with fully amortized installment 'small loans' — capped at $1,500, with terms of 60 days to 12 months and a 17%-per-month interest cap. Lenders must check ability to repay and can't charge prepayment penalties.
What the Small Lenders Act did
- Killed the single-payment payday loan: the old Deferred Deposit Lending Act was repealed; all those licenses expired August 1, 2020.
- Created ‘small loans’: unsecured, fully amortized loans repaid in equal installments over 60 days to 12 months.
- Set the caps: maximum $1,500 aggregate principal per borrower and no more than 17% interest per month.
- Added protections: ability-to-repay checks, a right of rescission, no prepayment penalties, and no rollovers.
Why lawmakers made the change
Legislators designed the shift to reduce the debt-cycle problem that came with lump-sum loans due on payday. Spreading repayment across months was intended to make small-dollar credit more survivable.
What it means for Oklahoma City borrowers
You can no longer get a classic two-week payday loan in OKC. Instead, licensed small lenders offer installment loans, and credit unions and paycheck-advance apps compete for the same small-dollar borrowers — often at lower cost.
FAQ
Are payday loans still legal in Oklahoma?
The classic single-payment payday loan is gone; installment ‘small loans’ under the Small Lenders Act replaced it in 2020.
What’s the maximum small loan?
$1,500 in aggregate principal per borrower across all licensed small lenders.
Who regulates these loans?
The Oklahoma Department of Consumer Credit.
Educational content, not financial advice. Always verify a lender is licensed by the Oklahoma Department of Consumer Credit before borrowing.