Payday loan laws in Montana

Are payday loans legal in Montana?

Not in its classic form. Montana holds small-dollar credit to a 36% APR ceiling, which makes two-week, fee-based payday pricing impossible to license. What is legal instead is an installment-style loan structured under that cap.

The ceiling is a rate cap, not an outright ban on small-dollar credit — lenders may still offer installment products inside it under Mont. Code Ann. § 32-5-101 et seq.. What cannot be licensed is two-week, fee-doubled payday pricing.

How much a payday loan can cost in Montana

The statutory ceiling is 36% APR Cap. A two-week $15-per-$100 fee equals about 391% APR, which is why the APR column looks the way it does even in “cheap” states.

Cost is capped, not quoted: a lender may charge less than the ceiling, never more. Compare total repaid, not the headline note rate.

Loan terms, rollovers and the one-loan rule

The statutory term is N/A. On renewals: forbidden. Roll-overs are prohibited outright — a payday loan cannot be repaid with the proceeds of a new deferred deposit loan (MCA 31-1-723). Where a statewide database exists, it is what makes these limits enforceable in real time — the lender queries it before every loan.

Online payday loans in Montana

The 36% ceiling applies to online lenders exactly as it does to storefronts. Licensed online installment lenders may operate, but any internet offer of two-week, high-fee payday credit to a Montana resident is unlicensed and illegal.

Verify the license before you sign at banking.mt.gov — search the lender’s exact legal name. If it is not licensed, the loan is being made illegally and the regulator’s complaint desk is the right destination.

Who regulates payday lending in Montana?

The Montana Division of Banking and Financial Institutions licenses lenders, publishes the fee schedule and takes complaints from borrowers.

1. Keep the loan agreement, every fee disclosure and your payment history.
2. File a complaint with the Montana Division of Banking and Financial Institutions (banking.mt.gov) — describe the charge or practice and attach the documents.
3. If the lender turns out to be unlicensed or the complaint stalls, escalate to the Montana Attorney General and the CFPB complaint portal.

Your rights as a borrower in Montana

• Right of rescission. N/A — return the proceeds and walk away at no cost.
• Full disclosure. The lender must state the APR and the total of payments before you sign; a missing disclosure is itself a violation.
• No criminal exposure for default. An unpaid loan is a civil debt — arrest threats are an illegal collection tactic.
• Payment-plan right. In nearly every licensing state you can demand an extended payment plan instead of a rollover — ask for it in writing.

Legal alternatives in Montana

installment loans priced under the state’s 36% ceiling, federal credit-union payday-alternative loans (PALs), employer salary advances and local assistance programs.

Questions about Montana payday loan laws