North Dakota Payday Loans

N.D. Cent. Code 13-08-01 et seq.
Status: Legal

Payday loans are legal in the state of North Dakota, pursuant to N.D. Cent. Code 13-08-01 et seq. The number of companies offering payday loans in North Dakota currently stands at 51.

Payday Loan Lending Laws in North Dakota

North Dakota payday loan laws impose a maximum limit of $500 on the amount of loan that can be issued per account, an amount that must be paid back with a maximum of 60 days. The assorted fees allowed in the state can stack up quickly. The APR per annum currently stands at 520% per annum, and lenders can charge up to 20% flat on the amount of loan issued. If a borrower requests $300, for example, they can be charged $60 for interest. Additionally, lenders can use finance charges of up to $20 for every $100 of loan issued for a period of fourteen days, and lenders can only charge a databasing fee for keeping track of a borrower’s business history. Finally, a lender can charge a $20 nonsufficient fund fee if a repayment check bounces.

The most telling aspect of North Dakota payday loan laws is the lack of specifications on several important factors. For example, regulations do not specify how many loans a single borrower can have out at one time. This can seem like a large advantage for the borrowers, as they can take out multiple loans to address financial emergencies that the $500 allowed from a single loan might not address. However, the lack of loan limits also puts the borrower in danger of falling into a debt cycle where they must take out new loans to pay off the old loans and find themselves in a financial hole very quickly.

The total amount borrowed through multiple loans can also play a large role in further lender charges, particularly if a delinquent borrower makes use of the rollovers allowed by state regulations to accommodate the 20% renewal fee. This means, for example, that if the total amount of the outstanding loans is $600, the borrower would have to pay up to $120 for the renewal fee. State laws do require a cooling-off period of three days between when a loan is paid off before the borrower can request a new loan. Regarding delinquent loans, a lender cannot file criminal lawsuits against a borrower for failing to repay the loan on time, but exceptions can be made if the borrower attempts to evade repayment by closing the bank account set up to repay the loan.

Lending Rules*

Lenders in the state of North Dakota are legally required to comply by the following limitations according to N.D. Cent. Code 13-08-01 et seq.:

Maximum Loan Amount:
$500
Maximum Length of Loan:
60 days
Maximum Finance Rate & Fees:
20% + databasing fee
Finance Charge for 14-day $100 Loan:
$20
APR for 14-day $100 Loan:
520%
Max # Outstanding Loans at One Time:
Not Specified ($600 aggregate loans outstanding to all licensees)
Rollovers Permitted:
One (renewal fee not to exceed 20% of amount being renewed)
Collection Fees:
$20 NSF fee (if disclosed)
Criminal Action:
Prohibited (Unless account was closed on date of original transaction)
*The information displayed may not be current. For the most recent information, please visit http://www.paydayloaninfo.org/state-information/42.

Regulatory Information

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

Regulator:
North Dakota Department of Financial Institutions
Address:
2000 Schafer Street, Suite G Bismarck ND 58501
Phone:
(701) 328-9933
Fax:
(701) 328-0290
Website:


North Dakota Lenders

Below you can find North Dakota payday loan lenders in the following cities:

North Dakota Statistics**

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

Total Population:
757,952
Median Household Income:
$57,181
Poverty Rate:
11.0%
Median Gross Rent:
$709
High School Graduate or Higher:
91.7%
Bachelor's Degree or Higher:
27.7%
**The information displayed may not be current. For the most recent information, please visit http://www.census.gov/quickfacts.

Borrow Responsibly

The heavy fines and unlimited access to cash advance loans should encourage a potential borrower to take the time to research everything they can about the state’s payday loan laws and the individual lender before committing to the loan. Payday loans are, by design, supposed to be short-term loans meant to address emergency situations. They should not be used for long-term financial planning or without a personal repayment plan. This means a potential borrower should take the time to ensure they can pay back the loan quickly so as to avoid further financial problems.

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