While laws regulating the pay day loans have been put in place in as many as 37 states of America, notwithstanding ban imposed by another 12, the laws differ in their forms and methods of implementation from state to state.

For example, the State of North Carolina through its department of justice announced on the first day of March, 2006 that the State have entered into agreement on the basis of negotiation with all normal and fax less payday loans lenders those who are operating in the state. By this agreement the inclusion of paddy loans for short term in contract with banks of other states were made illegal.  From date of such agreements, the lenders were prohibited from making any new loans and were also prohibited from collecting fees on old loans. 

Law in the State of Georgia on the other hand has completely prohibited the offering of payday loans for hundred years. Yet they were unable to stop it and in 2004 declared the practice as felony to completely ban it. 

A different form is followed in New Mexico. The fees are capped and the total loans availed under all loans including the no fax payday loans are limited. The immediate rollover of the loan is also prohibited. This law has come into effect from the first day of November, 2007 in the State.