Payday Loans are Legal in Montana

Beware of predatory lending

Payday Lenders in Montana

Payday loans in Montana provide short-term financial assistance for unexpected expenses such as medical bills or vehicle repairs. They are most popular among consumers with poor credit scores or limited credit history, who are less likely to qualify for traditional bank or credit union loans. While payday loans offer more accessibility than to other forms of credit, they typically come with high rates and fees.

Montana has implemented specific regulations on lenders, including caps on interest rates and term restrictions. As a result, the number of licensed payday lenders in Montana has decreased over the years until they have become all but non-existent.

When seeking a payday lender in Montana, conducting thorough research is vital. It is crucial to consider the lender’s reputation and carefully review their terms. Montana has established limits on interest rates, fees, and charges that lenders must adhere to, so verifying their license is important to ensure compliance. To avoid scams, it is advisable to work with licensed lenders who provide transparent information about their fees and rates. Caution should be exercised when dealing with lenders employing aggressive advertising tactics. Checking the status of their license with the state regulatory body and reading customer reviews online can provide insights into their reputation and reliability.

Payday Loan Laws

Montana has stringent laws in place to regulate payday loans, aiming to protect consumers from predatory lending practices. Under Montana law, payday lenders are required to adhere to interest rate caps and other restrictions to ensure fair and affordable lending. The state prohibits rollovers or renewals of payday loans and mandates a minimum repayment term of 31 days. Additionally, lenders must be licensed and comply with specific disclosure requirements, promoting transparency in loan agreements.

The State of Montana has one major piece of legislation that governs payday loans:

Loan Terms and Conditions

Maximum loan amount: $300

Maximum Interest Rate: 36%

Minimum loan term: 14 days

Maximum loan term: 31 days

Number of rollovers allowed: None

Finance Charge: 1.38%

Legal action: 8 Years

Certified Payday Lenders in Montana

Company Name	Company score	License Status
Delbert Services	7.6	Valid
LDF Holdings, LLC	7.4	Valid
Populus Financial Group, Inc.	7.1	Valid
Big Picture Loans, LLC	6.8	Valid
Opportunity Financial, LLC	6.2	Valid
CASHCALL, INC.	5.8	Valid

History of Montana Payday Loans

Throughout its history, the landscape of payday loans in Montana has undergone significant transformations. Back in 1999, payday lending emerged as a legal enterprise in Montana, allowing lenders to capitalize on exorbitant interest rates for over a decade. However, in 2010, a momentous turning point materialized with the passing of HB 118 by the State Legislature. This groundbreaking law reinstated usury restrictions and resolutely capped interest rates at a mere 36%. The impact of this legislation prompted many lenders to take their operations online. Fast forward to the present, and the payday loan landscape in Montana stands transformed, with a dwindling number of lenders dotting the financial horizon. This change serves as a testament to Montana’s dedication to consumer protection and the pursuit of more equitable lending practices.

State Resources

How to file a complaint

Borrowers can file a complaint with the Division of Banking & Financial Institutions services using their website to download a complaint form, then emailing, mailing or faxing it to them. All complaints must be submitted using a written form, oral complaints will not be investigated.

Montana Payday Loans Debt Relief

How to Get out of Payday Loan Debt?

Escaping the clutches of payday loan debt in Montana demands a strategic approach and careful consideration of available options. Start the journey towards financial freedom by engaging in open dialogue with your lender. Through skillful negotiation, explore the potential for devising a customized plan that reduces the outstanding balance, extends the repayment timeline, and lowers interest rates. An alternative avenue worth looking into involves the possibility of refinancing the loan, which could result in a lower interest rate that can help you regain control over your payments. However, if all other avenues fail, bankruptcy may be a last option.

Support Resources

Types of Quick Loans in Montana

Cash Advance Apps Montana residents have embraced cash advance apps as a convenient solution for quick access to funds. These apps connect borrowers with lenders who are willing to provide small loan amounts, which are then repaid within a short timeframe. The appeal lies in the convenience of applying from anywhere and receiving funds within hours, catering to the urgent financial needs of Montanans. However, some of these apps have monthly membership fees which must be paid, even if no money was borrowed in that particular month.

Installment Loans When it comes to borrowing money in Montana, installment loans offer an alternative option. These loans allow borrowers to repay the borrowed amount over a period of months or years, granting flexibility and potentially lower interest rates compared to payday loans or cash advance apps. However, it is crucial for borrowers to meticulously review and comprehend the terms and conditions of installment loans to avoid getting trapped in an endless cycle of debt.

Lines of Credit For ongoing access to funds, personal lines of credit serve as a flexible choice for Montana residents. Similar to credit cards, a line of credit provides a predetermined amount of credit that can be utilized as needed, with interest charged only on the amount used. This makes it ideal for managing unexpected expenses or emergencies. Personal lines of credit often feature lower interest rates than credit cards, rendering them a more affordable option. Nevertheless, responsible borrowing is imperative to prevent excessive debt accumulation when utilizing lines of credit.

Alternatives to Payday Loans in Montana

Personal Loans

When seeking quick access to funds in Montana, personal loans can serve as a valuable tool. While interest rates on personal loans may be higher than other loan types, the flexibility they offer in repayment terms makes them an attractive choice. Numerous credit unions and banks in the state extend personal loan options, including fixed-rate and variable-rate alternatives. Eligibility for personal loans in Montana typically hinges on factors such as a solid credit score and a stable income. In fact, recent statistics reveal that personal loan originations in Montana reached $2.5 million in the past year, demonstrating the demand for this financing option.

Construction Loans

Montana residents embarking on new home construction or major renovation projects can benefit from specialized financing options known as construction loans. These short-term loans cater specifically to covering costs related to building materials, labor, and various expenses associated with the project. Construction loans may involve higher interest rates and stricter qualification criteria due to lenders' need to ensure timely completion within the established budget. Multiple banks and credit unions across the state offer construction loans, allowing borrowers to explore different rates and terms to find the most favorable option.

Home Equity Loans

Home equity loans present an advantageous solution for Montanans seeking to leverage the equity in their homes. This loan type proves invaluable for debt consolidation, home improvements, or covering other significant expenses and the average home equity loan balance in Montana stands at $50,000. Home equity loans typically carry lower interest rates compared to personal loans or credit cards, making them an attractive option. However, borrowers must use their homes as collateral. Various banks and credit unions throughout Montana extend home equity loans, and some even provide home equity lines of credit, granting borrowers the ability to withdraw funds up to a predetermined limit when needed.

Bad Credit Loans in Montana

For individuals with less-than-ideal credit scores in Montana, obtaining a loan can pose challenges. Nevertheless, tailored solutions such as bad credit loans exist to cater to this demographic. These loans are specifically designed for those with poor credit histories, but they often come with higher interest rates and stricter terms. Montana boasts a range of online lenders and alternative financing companies that specialize in bad credit loans, providing viable options for borrowers in need. It is crucial for individuals considering bad credit loans to meticulously review the terms and conditions, ensuring they fully comprehend the associated fees and obligations.

Montana Small Business Loans

Small business loan options in Montana:

SBA loans: The SBA offers several loan programs for small businesses, including 7(a) loans, microloans, and disaster loans.
Community Development Financial Institutions (CDFIs): CDFIs, such as local nonprofit organizations and community banks, offer small business loans to underserved communities, focusing on promoting economic development.
Credit union loans: Credit unions may offer small business loans with lower interest rates and more flexible repayment terms.
Montana Business Assistance Connection (MBAC) Loans: MBAC offers loans to small businesses in Montana, providing financing options for startup costs, working capital, and equipment purchases.
Equipment Financing: Financial institutions and specialized lenders in Montana offer equipment financing, allowing businesses to purchase or lease equipment necessary for their operations.

VA loans in Montana

Military veterans and active-duty service members in Montana can benefit from VA loans, a specialized type of mortgage loan backed by the U.S. Department of Veterans Affairs. VA loans offer favorable terms and lower interest rates compared to traditional mortgages, making homeownership more accessible for those who have served. These loans can be used for home purchases, mortgage refinancing, or home improvement projects. To qualify for a VA loan, applicants must meet eligibility requirements, including serving a minimum length of time in the military and possessing a valid Certificate of Eligibility. Montana has various banks, credit unions, and online lenders specializing in VA loans, catering to the unique needs of military members and veterans.

Montana Student Loans

Many options are available to Montana students to help finance their college education. These options include:

Federal Student Loans: The U.S. Department of Education offers several federal student loan programs, including Direct Subsidized and Unsubsidized Loans, Parent PLUS Loans, and Graduate PLUS Loans.
Montana Family Education Loan (MFEL): Offered by the Montana Higher Education Student Assistance Corporation (MHESAC), MFEL is a loan program specifically designed to assist Montana students and their families in financing their education.
Montana Higher Education Grant (MHEG): Also provided by MHESAC, MHEG is a grant program that offers financial assistance to eligible Montana students based on their financial need.
Montana University System (MUS) Scholarships and Grants: The Montana University System provides scholarships and grants to eligible students attending Montana colleges and universities, which can help reduce the need for borrowing.
Private Student Loans: Private lenders, such as banks and online lenders, offer student loans with varying interest rates and repayment terms.

Montana Income Information

The recently released 2021 U.S. Census reports show Montana having a median household income of $60,560, slightly below the national median of $69,021. Montana’s economy is diverse, with sectors such as agriculture, energy, tourism, and manufacturing playing significant roles. The state’s natural resources, including vast landscapes, mineral reserves, and outdoor recreational opportunities, contribute to its economic growth and provide employment opportunities for its residents. Montana’s median household income varies widely by county, with Jefferson County being the highest at $71,779, and Wheatland County is the lowest at $35,265. The state’s poverty rate was 12.2% in 2021.

United States Census Bureau. “Poverty in the United States: 2021.” Accessed on May 9, 2023.
United States Census Bureau. U.S. Census Bureau QuickFacts: Montana. Accessed on May 9, 2023.

Montana Payday Lender Complaints

Below are trends associated with some payday lenders in Montana, as reported to the Consumer Financial Protection Bureau.

Company Name	Count
Delbert Services	3
LDF Holdings, LLC	3
Populus Financial Group, Inc. (F/K/A Ace Cash Express)	2
Big Picture Loans, LLC	2
Opportunity Financial, LLC	1
CASHCALL, INC.	1
Total Complaints	25

Consumer Financial Protection Bureau. Consumer Complaint Database. Accessed on May 9, 2023.

Most Common Issues

Complaint type	Count
Unexpected fees or interest	12
Struggling to pay loan	5
Received loan didn’t apply for	2
Can’t contact lender	2
Problem with payoff process	1

What are the main reasons residents of Montana apply for payday cash advance online or offline

Payday loans are typically used for nonnegotiable everyday expenses like your rent, utilities, and groceries. Per data reported by Pewtrust, the percentage of reasons described below

Reason	Share
Regular Expenses (Utilities, car payment)	53%
Unexpected emergency/expense	16%
Rent/Mortgage	10%
Something Special	8%
Other	5%
Did not answer	2%

Payday Lenders by City

Billings
Missoula
Great Falls
Bozeman
Butte-Silver Bow
Helena
Kalispell
Belgrade
Havre
Anaconda-Deer Lodge County

Helena Valley Southeast
Helena Valley West Central
Miles City
Livingston
Evergreen
Whitefish
Laurel
Lockwood
Sidney
Lewistown

Dillingham
Wrangell
Hooper Bay
Akutan
Craig
Delta Junction
Hoonah
Chevak
Point Hope
King Cove

Frequently Asked Questions

Will applying for a payday loan impact my credit?

Payday lenders in Montana typically conduct credit checks as part of their lending process. These checks help lenders assess the borrower’s creditworthiness and determine the risk associated with extending a loan.

What do I need to apply for a payday loan?

To apply for a payday loan in Montana, you will need to provide proof of income, contact and banking information, and a valid government-issued ID.

Can I cancel my payday loan?

In Montana, borrowers have the right to cancel a payday loan by returning the borrowed funds to the lender by the end of the next business day after the loan is originated, without any associated fees.

Can a payday loan lender garnish my wages?

Payday lenders can garnish your wages in the state of Montana if they win a lawsuit against you and get a court judgment to do so.

Can spouses have separate loans?

Yes, spouses can apply for separate payday loans in Montana. Each individual has the right to apply for a payday loan based on their own financial circumstances and eligibility.

When will I receive my funds if I am approved for a payday loan?

If you are approved for a payday loan in Montana, you can expect to receive the funds within one business day. Some lenders may even offer same-day funding options, but it’s important to check with your lender for specific information about their funding timeline.

What happens if I can’t repay my payday loan on time?

If you can’t repay your payday loan in Montana, the lender will likely charge you additional fees and interest. The lender may also turn over your debt to a collection agency or take legal action against you.

When could I apply for another payday loan?

In Montana, you can apply for another payday loan immediately after you pay off your previous loan.