Montana Payday Loan Law and Legislation

MaxLoan Amount:$300

Payday lending is restricted in the State of Montana.

It is regulated by Mont. Code Ann. 31-1-701.

These restrictions imposed on the lenders by the state are meant to protect the residents from the trouble with indecent lenders.

  • In the state of Montana payday lending is restricted by state caps of 36% APR and, therefore, lenders are no longer allowed to charge 3-digit APR here.
  • This means that a $100 loan given for a fortnight will be charged with only $1.39.
  • A maximum amount of payday loan allowed in Montana is $300 (minimum equals $50) given for a period of 31 days maximum.
  • No rollovers are allowed; nor are any renewals, or refinance, or extensions. It is also illegal for a lender to make a borrower get a new loan in order to repay the previous one. Moreover, no interest can be charged for this.
  • In terms of collection payday lenders in Montana are allowed to charge one insufficient funds fee in the amount not exceeding $30 and also some reasonable attorney fee.



Any criminal actions are prohibited as in the state of Montana payday loan debts and non-repayments are considered civil offence and are not in any case fraught with imprisonment. If a borrower is unable to repay, he should inform a lender in a written form about the matter in advance. Borrowers should not get scared of the threats about criminal prosecutions and the like; what is more, as a rule, lenders are unwilling to deal with anything involving legislation and courts. Therefore one thing is required from a borrower - to be legally literate and be aware of the state laws.

In many cases lenders offer repayment plans, or in other case, they may agree to the one offered by borrowers themselves. They are interested in getting money back and not in court trials and so on. Thus, provided a person took a payday loan and is unable to repay it in time, the best way out is to study the laws, keep calm and be able to negotiate cleverly.

More information about Payday Loans in Montana: http://www.banking.mt.gov/default.mcpx

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