Montana Payday Loans

Mont. Code Ann. 31-1-701 (Payday Loan Law enacted prior to Ballot Initiative 164 that capped rates at 36% APR remains on the books.)
Status: Prohibited (Usury Cap)

High cost Payday loans are prohibited in the state of Montana, pursuant to Mont. Code Ann. 31-1-701.

Payday Loan Lending Laws in Montana

Compared with other states that offer payday loans, Montana has some of the most stable laws and fees in the United States. A borrower cannot request more than $300, which must be paid back within 31 days. The APR and finance charges remain relatively low as of January 2017, and lenders can charge a $30 nonsufficient fund fee for a bounced repayment check. If a borrower defaults on a loan, the lender can also charge an array of collection fees that may include reasonable attorney fee and court costs.

Regarding attempts to halt a loan from defaulting, the state of Montana does not allow rollovers on any loans. This can actually work in favor of the borrower, as it sets a time period in which the loan must be repaid. Not being able to renegotiate the loan payback terms can therefore force the borrower to make better financial plans to repay the loan, although it can also force irresponsible borrowers to face more fees and credit damage if they do not pay the loan back on time. Also, as the maximum number of payday loans a borrower can have out at one time is not specified, this can help keep a borrower from falling into a debt cycle wherein they are forced to take out new loans to pay back the old ones, one of the largest fears in using payday loans.

Should a borrower become delinquent in repaying the loan, they should keep in mind that lenders cannot threaten criminal actions against them. The nonpayment of the debt qualifies as a civil offense, which prohibits a lender from garnishing wages, threatening jail time, or harassing a borrower until the loan gets repaid. But a borrower should also remember the lender can seek a civil decision, which would force a borrower to repay the loan via court judgment. While the lending laws do not state if repayment plans can be used, a borrower should check with the individual lender if such plans do exist. More than anything, the lender wants to get their money back as quickly as possible. Keeping this fact in mind can help a responsible lender to seek better loan terms and maintain communication with the lender should repayment difficulties arise.

Lending Rules*

Lenders in the state of Montana are legally required to comply by the following limitations according to Mont. Code Ann. 31-1-701 (Payday Loan Law enacted prior to Ballot Initiative 164 that capped rates at 36% APR remains on the books.):

Maximum Loan Amount:
$300
Maximum Length of Loan:
31 days
Maximum Finance Rate & Fees:
36% APR
Finance Charge for 14-day $100 Loan:
$1.39
Collection Fees:
One $30 NSF fee
*The information displayed may not be current. For the most recent information, please visit http://www.paydayloaninfo.org/state-information/34.

Regulatory Information

If you have a complaint against a Montana Cash Advance location you can contact your state regulator below:

Regulator:
Division of Banking and Financial Institutions
Address:
301 South Park, Suite 316, Helena, MT 59601
Phone:
(406) 248-2742
Website:


Montana Check Cashers

Below you can find Montana check cashers in the following cities:

Montana Statistics**

The following information is key demographic data for the state of Montana from the Census bureau.

Total Population:
1,042,520
Median Household Income:
$47,169
Poverty Rate:
14.6%
Median Gross Rent:
$711
High School Graduate or Higher:
92.8%
Bachelor's Degree or Higher:
29.5%
**The information displayed may not be current. For the most recent information, please visit http://www.census.gov/quickfacts.

Borrow Responsibly

Payday loans are, by design, supposed to be short term loans to meet the borrower’s financial obligations until the next paycheck. Because of the short repayment time frame of these loans, they cannot be used for long-term financial planning and should discourage irresponsible usage by the borrower. That being stated, a borrower should understand everything they can about the state’s lending laws and the terms offered by an individual lender before making use of the payday loans. The best resource for a borrower in this case is information and, ideally, the time to research.

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