Payday Loans Laws, Montana (MT)

Are you looking for a payday lender in Montana? Well, these days you do not have to search far and wide to get a loan as payday lenders almost everywhere, even on the Internet so you do not have to go anywhere. However, before you apply for a loan it is wise that you know the legal ramifications of getting a loan and this article discusses the Montana laws covering payday loans.

Payday loans in Montana are legal, but the interest rate is a bit high, since the allowed rate is up to 3 digits APR. Nevertheless, the exorbitant rate is not that bad compared to some of the states that legalized payday loans in the United States. The state of Montana just like the other states put a restriction on payday lenders, which is necessary to protect borrowers against greedy lenders offering cash advance, the other name for payday loans.

What Happens If I Do Not Pay The Loan On Due Date?

The State of Montana prohibits the filing of criminal case to borrowers that could not pay lenders on due date. So, when you cannot pay on time, you have nothing to be worried about, as they cannot do anything to harass you. You can also make stop payment on checks or restrict access to payday lenders you have previously authorized to debit the loan from your account, by simply closing the account as long as you have informed the lenders of your action. By the way, they may not be able to take criminal action against you but they can always file a civil case easily, but not many lenders would go the extra length to recover the debt.

Collection Fees/Rollovers

Borrowers that cannot pay their loan or become default will be charge with collections fees that include attorney fees, court costs and onetime NSF fee amounting to $30. The State of Montana also prohibits automatic rollovers or extension, so no lender can force a borrower to get another loan just to settle the first debt.

Maximum Loan Amounts/APR

Payday loans should not exceed $300 and no lender will issue a loan to single borrower under one account. The maximum annual percentage rate on the other hand is around 650%, plus additional finance charges that does not exceed $25 for a loan of $100 payable in 14 days and maximum of 30 days

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