Payday loans in Montana
Montana keeps the Deferred Deposit Loan Act, yet the 2010 I-164 ballot measure set a 36% yearly fee cap, and the state regulator notes no payday lender holds a licence.
- Payday lending
- Banned
- Max cost
- 36% APR
- Top amount
- $300 (not including the fee)
Are payday loans legal in Montana?
Although the Montana Deferred Deposit Loan Act remains on the books, payday loans are effectively banned in Montana. State law defines a payday loan as a deferred deposit loan and sets the maximum yearly fee at 36 percent. For every $100 borrowed over 14 days, the cap results in $1.38 of fees. Loans must range from $50 to $300, run no longer than 31 days, and you may hold only one at a time.
Voters approved Initiative 164 in November 2010, lowering rates on consumer, title, and payday loans to 36 percent per year. Due to this cap, the Montana Division of Banking and Financial Institutions states that zero licensed payday lenders operate in the state today. Before you borrow, you can check if a lender holds a license on the Nationwide Multistate Licensing System Consumer Access website. You may submit a complaint form via fax, mail, or email to the state banking division to report a lender.
- On November 2, 2010, voters approved Initiative 164, which reduced annual rates for consumer, title, and payday loans to 36%.
- The state banking division says no licensed payday lenders operate in Montana right now.
- For any deferred deposit loan, the old law still sets a $50 floor, a $300 ceiling, and a 31 day maximum term.
- The loan is cancelled free of charge when you repay all of it by 5 p.m. on the next day the lender is open for business.
- To determine if a loan is unconscionable, the law checks if it surpasses 25% of your monthly net income.
Montana payday loan laws
- Law in force
- Montana Deferred Deposit Loan Act
- Cited as
- Mont. Code Ann. 31-1-701 through 31-1-729
- Fees under the law
- For each deferred deposit loan made or carried, the fee may not exceed 36% per annum, not counting insufficient funds fees.
- Most you can borrow
- $300 (not including the fee)
- How long a loan runs
- 31 days
- Rollovers
- not permitted (renewing, refinancing, or consolidating with proceeds of another deferred deposit loan is banned; however, a free extension is allowed)
- Loans you can hold at once
- one (you cannot get a new loan while an existing deferred deposit loan is outstanding)
- Installment lending limits
- Under the Montana Consumer Loan Act, interest rates excluding specific fees cannot go above 36% annually
Also checked against the consumer finance page of the state Division of Banking and Financial Institutions (no licensed payday lenders), plus Mont. Code Ann. 31-1-715 and 31-1-722 on mca.legmt.gov. Full statute text.
Online lenders that list Montana
Seven companies we track say they lend in Montana: 3 online installment lenders and 4 tribal lenders.
All three lenders with a posted APR post a top APR above Montana's 36% APR cap.
| Lender | Kind | Posted APR |
|---|---|---|
 NetCredit | Installment | 34.99% to 99.99% |
 OppLoans | Installment | 99% to 195% |
 Rise Credit | Installment | 60% to 299% |
Tribal loans in Montana
On the immunity claim tribal lenders make, see are tribal loans legal.
Four tribal lenders we track list Montana as a state they lend in. One of the four publishes an APR: 99% to 490%. That lender posts a top APR above Montana's 36% APR cap.
| Lender | Posted APR |
|---|---|
 Spotloan | 99% to 490% |
 MaxLend | Not published |
 Minto Money | Not published |
| American Web Loan | Not published |
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Montana and the states around it
| State | Payday lending | Max cost | Top amount |
|---|---|---|---|
| Montana | Banned | 36% APR | $300 (not including the fee) |
| Idaho | Allowed | None in the law | No more than 25% of your gross monthly income may be borrowed, with a principal limit of $1,000. |
| North Dakota | Allowed | $20.00 per $100 borrowed | At most $500 may be disbursed in one transaction; a single customer's total outstanding obligations may not exceed $600 in all. |
| South Dakota | Banned | 36% APR | None allowed |
| Wyoming | Allowed | Fees run $30 or 20% monthly, with the higher figure applying. | W.S. contains no set limit. 40-14-363 |
Montana loans with no credit check
Installment loan rates: Under the Montana Consumer Loan Act, interest rates excluding specific fees cannot go above 36% annually.
See no credit check loans: the checks lenders still run, and the price.
Verify a lender's license in Montana
- Look the lender up on the license list before you hand over any bank details.
- Lenders here answer to the Montana Division of Banking and Financial Institutions.
- Had trouble with a lender? Report the lender.
Sources for Montana
- Fees on a deferred deposit loan are capped at 36% per year.; A returned payment can cost at most $30, and only once per check.; Approved on November 2, 2010, Initiative 164 rewrote the 36% fee rule.mca.legmt.gov
- The most you can borrow is $300, not including the fee.; You must borrow at least $50.; The longest a loan can last is 31 days.mca.legmt.gov
- A loan cannot be renewed or refinanced with a new deferred deposit loan.; While one deferred deposit loan is outstanding, you cannot get a new one.; Under the unconscionability test, a loan above 25% of monthly net income is a warning sign.mca.legmt.gov
- Under the Consumer Loan Act, the cap on installment interest is 36% per year.mca.legmt.gov
- I-164 was a ballot initiative that took place in 2010.; Payday fees could reach one quarter of the loan amount before I-164.; I-164 lowered rates to 36% a year and stopped lenders from structuring deals to avoid the limit.sosmt.gov
- According to the regulator, no licensed payday lenders operate in Montana.; The Division uses NMLS to issue licenses.doa.mt.gov
- You can find licensee details on NMLS Consumer Access.; Send complaints to the Division by using its complaint form.doa.mt.gov