Payday loan is a temporary solution for cash shortage, especially when there is an unexpected expense. Payday loans in some states are not legal, but the State of Montana consider it as legal but subjected to specific laws. This article talks about the laws imposed by Montana for payday loans.
Maximum Loan Amount Allowed By Montana
The maximum payday loan amount per borrower is $300 without rollovers, repay, or refinance, as the state does not consider it beneficial to borrowers and lenders. But of course, you can apply for two loans in case you need higher amount, but maximum of two loans per borrower at one time only.
Payday Loan Term
In Montana, payday loans should be paid within 31 days, as this is the maximum loan term per borrower. Since there is no rollover, refinance and repay then borrowers are required to settle their loan in 1 month. In case they cannot, applicable charges apply and the loan becomes due and demandable.
Maximum Finance Rate for Payday Loan
The state of Montana set the maximum permitted fee to 25% of the payday loan face value. So, that means when you borrow $100 for 14 days, the finance charge is $25 as the APR is 650%. The collection fees for non-payment of loan are onetime payment of $30 NSF fee, reasonable attorney’s fees if the amount disclosed, and the court costs.
Now, if in case there is a complaint against payday lender or vice versa, the Montana Department of Administration handles all formal complaints on payday loans.
Montana Department of Administration
Division of Banking and Financial Institution
301 South Park, Suite 316 P.O. Box 200546 Helena MT 59620
Phone: (406) 841-2920
Fax: (406) 841-2930