Payday Loans and Cash Advance in Hawaii

Payday repealed in 2022; 36% installment loans only. Below: the law, the limits, what $300 costs here, who regulates it, and how to request a cash advance online in Hawaii.

Restricted in Hawaii. Max amount: $1,500 principal per loan, and no more than $1,500 financed from one lender at a time (HRS 480J-2, 480J-5); no payday product. Max fee: Interest capped at 36% a year, plus a monthly maintenance fee of $25 on principal up to $299.99, $30 from $300 to $699.99 and $35 from $700; total charges capped at 50% of principal; no origination fee (HRS 480J-2, 480J-4). A $300 loan for 60 days costs about $73.57 (149% APR). Regulator: Hawaii Division of Financial Institutions, Department of Commerce and Consumer Affairs, 808-586-2818.

Is a Cash Advance Legal in Hawaii?

The two-week payday loan no longer exists in Hawaii. Act 56 of 2021 repealed the deferred deposit law that had allowed check cashers to hold a post-dated check for a fee and replaced it with a new chapter of the Hawaii Revised Statutes, Chapter 480J, that took effect on January 1, 2022. The Division of Financial Institutions (DFI) describes the change plainly: payday lending laws were repealed, consumers can no longer get those high cost loans, and companies are instead licensed as installment lenders, the DFI's phrase for what used to be payday lenders. An installment loan under Chapter 480J is capped at $1,500, must run at least two months (four months above $500) and no more than twelve, and is repaid in substantially equal monthly installments rather than out of the next paycheck. Interest is limited to 36 percent a year, but the lender may also charge a monthly maintenance fee of $25 to $35 depending on the loan size, so the real cost of a small loan is well above 36 percent. Total loan charges may not exceed half the principal. A borrower can cancel within three business days, may renew only once, and cannot be threatened with criminal prosecution.

The governing law is Hawaii Revised Statutes Chapter 480J, Installment Loans (enacted by Act 56, Session Laws of Hawaii 2021) (Haw. Rev. Stat. 480J-2, 480J-4, 480J-5, 480J-6, 480J-8, 480J-10).

Loan Limits and Terms in Hawaii

Hawaii small-dollar loan rules at a glance
Rule	HI
Maximum amount	$1,500 principal per loan, and no more than $1,500 financed from one lender at a time (HRS 480J-2, 480J-5); no payday product
Maximum term	12 months (HRS 480J-2)
Minimum term	2 months for a loan of $500 or less; 4 months for a loan of $500.01 or more (HRS 480J-2)
Maximum fee per $100	Interest capped at 36% a year, plus a monthly maintenance fee of $25 on principal up to $299.99, $30 from $300 to $699.99 and $35 from $700; total charges capped at 50% of principal; no origination fee (HRS 480J-2, 480J-4)
APR on a $300, 14-day loan	Not available; a 14-day loan is illegal. A $300 loan over the two-month minimum costs about $73.57, roughly 149% by the simple fee-to-term formula
Rollovers	One renewal only, with renewal charges capped at 50% of the renewed principal; after that the balance must be paid in cash or its equivalent (HRS 480J-8)
Cooling-off period	None stated; no second loan to a consumer who has one outstanding with the lender or a related entity unless the consumer states in writing that no other loan is open (HRS 480J-5)
Statewide database	None; eligibility rests on the consumer's written statement and the lender's records (HRS 480J-5)

Hawaii priced the replacement product with two dials. Interest runs at no more than 36 percent a year on the unpaid principal, computed daily, with no origination or deferment fees. The monthly maintenance fee is what matters on a small loan: on $300 it is $30 a month, more than twice the interest, and it is charged every month the loan is open, so the two-month minimum term sets the floor on cost. The fee may not be charged to active-duty service members or their dependents. The only other permitted charges are a $30 default charge on an installment more than ten days late and one $25 insufficient funds charge per payment. Paying off early earns a prorated refund of unearned interest and maintenance fees under 480J-4(e).

What a $300 Loan Costs in Hawaii

Worked example: $300 for 60 days
Amount	Term	Fee	You repay	APR
$300	60 days	$73.57	$373.57	149%

A two-week loan is not legal in Hawaii, so this uses the two-month minimum term for a loan of $500 or less and the maximum charges in HRS 480J-2 and 480J-4. Interest at 36 percent a year on $300 repaid in two equal monthly installments of about $156.78 is $313.57 minus $300, or $13.57. The monthly maintenance fee for a principal of $300 to $699.99 is $30, charged twice: $60. Total cost 13.57 + 60 = $73.57, total repaid $373.57. APR = 73.57 / 300 x 365 / 60 = 1.49, about 149 percent; the Regulation Z APR on a declining balance is higher. The 50 percent cap on total charges, $150 on this loan, is not reached.

Run your own numbers with the cash advance calculator.

Consumer Protections and Who to Call in Hawaii

Only a lender licensed by the Division of Financial Institutions under Chapter 480J may make an installment loan; the DFI began issuing those licenses on January 1, 2022, the day the old payday law was repealed (DFI notice on Act 56).
You may rescind an installment loan at no cost by 5:00 p.m. Hawaii time on the third business day after it was made by returning the principal, and the lender must refund any fees or interest already collected (HRS 480J-6).
Before you sign, the lender must hand over a printed disclosure in at least 12-point type showing the amount financed, term, interest rate, monthly maintenance fees, total charges and annual percentage rate (HRS 480J-3).
Every agreement must carry a notice in at least 12-point type that state law prohibits the principal from exceeding $1,500 and that the loan is meant for short-term needs only (HRS 480J-7).
A lender may not threaten criminal prosecution to collect, may not visit your home or workplace uninvited, may not call between 9:00 p.m. and 8:00 a.m., and must keep a log of every collection contact (HRS 480J-10).
Charges are limited to 36 percent interest and the scheduled maintenance fee; origination and deferment fees are banned, the default charge is $30 after a ten-day grace period, and an insufficient funds charge is capped at $25 per payment (HRS 480J-4, 480J-11).
A licensed lender must post its license and a notice of its loan charges at every place of business where installment loans are made (HRS 480J-12).

Complaints and licence checks go to the Hawaii Division of Financial Institutions, Department of Commerce and Consumer Affairs: 808-586-2818, cca.hawaii.gov/dfi, or file a complaint at the regulator's complaint page. The federal CFPB also takes complaints about any lender.

Online vs Storefront Lenders in Hawaii

Chapter 480J does not distinguish between a counter and a website. Any company that makes installment loans to Hawaii consumers needs the DFI license, so a lender's record can be checked with the Division before you hand over bank details. The law's protections travel with the license: the 36 percent interest cap, the maintenance fee schedule, the $1,500 ceiling, the three-day rescission right and the collection rules apply whether the loan was made in Honolulu or from a server on the mainland. Websites that advertise a payday loan or a two-week cash advance to Hawaii residents are offering a product the state repealed in 2022, and a lender without a Chapter 480J license has no authority to make the loan at all. Out-of-state and tribal-affiliated sites still market to the islands at their own prices. If a lender is not on the DFI's licensee list, treat its offer as unlicensed and report it to the Division at 808-586-2818.

Alternatives If a Payday Loan Is Not the Right Fit

The legal small-dollar product in Hawaii is the Chapter 480J installment loan itself: up to $1,500, two to twelve months, 36 percent interest plus the monthly maintenance fee, with total cost capped at half the principal. Because the fee is charged per month, a shorter loan you can repay on time is cheaper than a long one, and paying off early earns a prorated refund. Federal credit unions can offer Payday Alternative Loans under National Credit Union Administration rules, and Hawaii's credit unions and banks, which are exempt from the Chapter 480J license, offer small personal loans and lines of credit at bank rates. A credit card cash advance is usually below the all-in cost of a small installment loan held for two months. Beyond credit, ask your employer about a wage advance, ask the utility or landlord you owe for a written payment plan, and call the statewide 2-1-1 helpline for help with rent, utilities and food. If you took a loan from a lender that is not on the DFI list, keep every document and file a complaint with the DFI before paying more.

Compare the installment loan and payday alternative loan options before you decide.

Frequently Asked Questions

Are payday loans legal in Hawaii?

No. Act 56 of 2021 repealed Hawaii's deferred deposit (payday) law effective January 1, 2022, and the DFI states that consumers can no longer get those loans. The replacement is the Chapter 480J installment loan: up to $1,500, at least two months long, repaid in monthly installments, with interest capped at 36 percent plus a monthly maintenance fee.

How much can an installment loan cost in Hawaii?

Interest is capped at 36 percent a year, and the lender may add a maintenance fee of $25, $30 or $35 a month depending on the principal (HRS 480J-2, 480J-4). On a $300 loan over the two-month minimum that is about $13.57 in interest and $60 in fees, $73.57 in total, roughly 149 percent by the simple fee-to-term formula. Total charges may never exceed half the principal.

What is the maximum installment loan amount in Hawaii?

$1,500. HRS 480J-2 caps the principal at $1,500, HRS 480J-5 bars a lender from financing more than $1,500 for one consumer at a time, and every agreement must carry a notice that state law prohibits the principal from exceeding that figure (HRS 480J-7). A lender may not make a second loan to someone who already has one open with it or a related company.

Can I cancel an installment loan in Hawaii after signing?

Yes. Under HRS 480J-6 you may rescind at or before 5:00 p.m. on the third business day after the loan was made, at the place where it was originated, by returning the principal in cash or the original check. The lender may not charge for the rescission and must refund any fees or interest it has already received.

Can a Hawaii lender have me arrested if I cannot repay?

No. HRS 480J-10 bars a lender from threatening criminal prosecution or any legal action the law does not allow. The lender may sue for the principal, interest, fees and costs the chapter permits, but it may not visit your home or job uninvited, call at unreasonable hours, or harass you, and it must keep a written log of every collection contact.

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