Payday Loan Payment Plans: Which States Require Them (2026)

17 states require payday lenders to offer an Extended Payment Plan at no extra cost — but fewer than 1 in 50 eligible borrowers ever request one. Here's the state-by-state chart, the exact words to use, and the one deadline that trips everyone up.

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Key takeaway: You must request the EPP before close of business on the last business day before the loan's due date. Miss that window by even a few hours and the lender can legally refuse. Use the exact words "Extended Payment Plan under state law" — not "extend" or "renew," which often means rollover.

Not sure an EPP is your best move? It’s one option among several. See how to settle debt yourself for the wider strategy, or browse all payday loan guides to compare your options.

What an EPP Actually Is

An Extended Payment Plan turns a single balloon payment into three or four smaller installments timed to your paydays — typically over 60 to 90 days — at no extra interest or fees. You pay only what you already owed (principal plus the original finance charge), just spread out.

That's the key difference from a rollover. A rollover pushes the due date two weeks in exchange for another full fee. An EPP is designed to help you actually pay the loan off without digging a deeper hole.

💡 EPP usage rates range from less than 1% in Florida to 13.4% in Washington State — despite state laws requiring them to be offered. The CFPB has found that lenders promote higher-cost rollovers over EPPs because rollovers generate another fee while an EPP does not. You often have to push specifically for this.

EPP Requirements by State — 2026 Chart

17 states require payday lenders to offer extended payment plans by law. Note: New Mexico, Ohio, and Virginia have reformed their payday laws so all loans must be structured as installment products from the outset — no separate EPP to request because the installment structure is built in.

← Scroll to see all columns →
StateInstallmentsFee AllowedKey Rules
AlabamaNot specifiedNoAvailable after missed payment
AlaskaNot specified5% of loan amountPlans can run up to 180 days
CaliforniaVariesNoLimited availability in practice
DelawareNo capNoMinimum 90-day plan
FloridaNot specifiedNoBorrower must complete credit counseling
Idaho4 or moreNoMinimum 2-month term; once per year
IllinoisNot specifiedNoMust be offered after 35 days without repayment; minimum 55-day term
Indiana4 or moreNoRequired after 2 rollovers; minimum 60-day term
Louisiana4 or moreNoMinimum 2-month term; once per year
Michigan3 installments~$20 fee allowedTied to 3 paycheck cycle
NevadaNot specifiedNo90-day loan term
Oklahoma4 installments10% of loan or $15 maxRequired after 2 consecutive rollovers
South Carolina4 or moreNoMinimum 2-month term; once per year
Utah4 or moreNoMinimum 2-month term; once per year
WashingtonNot specified$25 missed-payment fee3 months (loans ≤$400); 6 months (loans >$400); request by original due date
Wisconsin4 installmentsNoOnce per year
Wyoming4 or moreNoMinimum 2-month term; once per year

⚠️ Always verify with your state banking regulator before relying on these figures — laws change, and individual lender practices within the same state can vary.

How to Request an EPP — Timing Is Everything

⚠️ The "last business day" deadline: In most mandatory-EPP states, you must request it before close of business on the last business day before the loan's due date. If your loan is due Friday, the request generally needs to be in by Thursday before the office closes (often 5–6 p.m. local time). This is the single most common reason borrowers lose their EPP right.

Call or visit the lender as soon as you know you can't pay in full — ideally several days early. Use these exact words:

"I am requesting the Extended Payment Plan under state law."

Ask them to confirm the request in writing the same day. Sign the amendment or new payment schedule they provide and keep a copy. Once you're on the plan and making scheduled payments, the lender generally cannot start collection activity or report the account as past due.

What Lenders Can and Cannot Charge

In most mandatory-EPP states, the lender cannot add new interest or fees. Michigan allows ~$20, Oklahoma allows 10% of the loan amount (up to $15), and Alaska charges 5%. These are the three documented exceptions. If a lender in any other state tries to charge a "plan fee" or "administrative fee," ask them to cite the specific statute and get the answer in writing.

CFSA Best Practices — Leverage Even Without a State Law

The Community Financial Services Association of America (CFSA) requires member companies to offer an EPP at least once every 12 months at no extra cost, provided state law does not prohibit it. The typical CFSA plan: request by close of business on the last business day before the due date, four equal payments timed to paydays, no extra charge, no collection activity while current on the plan.

Look for the CFSA member seal on the storefront or website. If the lender is a member, ask for the plan under their Best Practices commitment and request written confirmation. It's not as strong as a state statute, but many members will honor it when pressed.

If the Lender Refuses or Stalls

  • Ask them to put the denial in writing and cite the specific reason
  • Contact your state banking regulator or attorney general's consumer protection division the same day
  • File a complaint with the CFPB at consumerfinance.gov/complaint
  • Keep every email, letter, and call note

States With No EPP Requirement — Your Alternatives

  • Negotiate a short voluntary payment plan directly with the lender
  • Revoke ACH authorization so they cannot keep pulling money automatically — see our guide on stopping withdrawals
  • Explore settlement once the account is delinquent — see the debt settlement guide
  • Contact an NFCC nonprofit credit counselor for help negotiating or budgeting

Frequently Asked Questions

How many times can I use an EPP?

Most states and CFSA guidelines limit it to once every 12 months per lender.

What if I already missed the due date?

In most states the EPP option is lost once the loan is past due. Act before the deadline — this is the most common mistake borrowers make.

Is an EPP available for online payday loans?

Rules vary. Some online lenders operate under tribal authority and may claim state EPP laws don't apply. See our tribal loans guide for the legal picture.

What if the lender says they don't offer EPPs?

Ask whether they are a CFSA member. If you are in a mandatory state, cite the state requirement and ask for the denial in writing.

Can I pay off the EPP early?

Yes, in virtually every version. There is no prepayment penalty.

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Disclosure: This page is for educational purposes only. Payday loan laws and EPP rules change and vary significantly by state. Always verify current requirements with your state banking regulator or a consumer-law attorney. Free legal help may be available through lawhelp.org.