New Jersey is a state in United States. Where the payday loans are illegal and the state law prohibits payday lending in New Jersey. A loophole that exists in New Jersey is to charge fees rather than interest to cash a payday loan. So, while payday loans are illegal in New Jersey they still exist. Payday loans are legal over Internet. New Jersey Payday Loans allows creditors to charge any fee or interest rate that the borrower is willing to pay. New Jersey law does not specify the number of extensions or rollovers available to a borrower.