North Dakota Payday Loan Laws
In the state of North Dakota, payday lending is legal and you can find North Dakota payday loans lending companies online or operating physical stores near you. There are certain restrictions that have been imposed on lenders. Despite all restrictions, getting a quick loan from a lending company remains a rather expensive and risky financial option.
The regulatory authority in North Dakota is the North Dakota Department of Financial Institutions. If you find yourself trapped in payday loan debt or feel that your lender is treating you unfairly or illegally, you have the option to file a complaint against that lender.
Exceptions to criminal action in North Dakota
Even though payday loans laws in North Dakota have strictly prohibited payday lenders from filing criminal lawsuits against their clients, in cases where the borrowers fail to repay their loans on time, there might still be certain exceptions. For instance, if you take out a short-term cash advance and on the date of the original transaction decide to close your checking bank account. You payday lender could file charges against you.
Collection fees in North Dakota
In North Dakota, collection fees can be charged only if it has been clearly stated in the loan agreement. North Dakota state laws have also imposed a maximum of $20 on collection fees. Payday lending companies can charge that fee just once as non-sufficient fund fee.
Number of outstanding loans in North Dakota
Although there aren’t any specific provisions under the North Dakota payday loans laws regarding the number of outstanding payday loans a borrower can have at one time, the aggregate total on all outstanding loans to all lenders cannot be more than $600. There is also a three-day cooling-off period. This means that lenders cannot issue another cash advance to a client until three days later and after the borrower repays his previous loan in full.
One-time rollover of outstanding loans which are not repaid on time is allowed in North Dakota. However, the renewal fee must not exceed 20% of the loan amount that is being renewed. That means if the outstanding balance is $500, you will have to pay up to $100 as renewal fee only. In addition to that, there may be other finance charges as well.
Finance charges and interest on North Dakota payday loans
North Dakota payday loan laws haven’t really made any effort to reduce the interest rate that lending companies can charge on short-term payday loans. Lending companies in North Dakota are allowed to charge up to 520% per annum as annual percentage rate. They can go up to 20% flat on the amount of the issued loan. For instance, if you borrow $400, you will have to pay $80 in interest. When you add the additional finance charges, that can be as much as $20 for every $100 of loan issued for a period of two weeks. That means you are going to pay another $80 as finance charges. Meaning that after just two weeks, that makes the total outstanding balance on the due date $560 ($400+$80+$80). Moreover, the state laws also do not really mind if the lending companies also charge a certain amount of money as databasing fee. No actual maximum limit has been specified under the laws in North Dakota regarding databasing fee. Lending companies have been given the freedom to charge as much as they like as long as the amount is stated in the loan contract. So every borrower should be extremely careful when taking out a quick loan.
Maximum loan amount and repayment period in North Dakota
Payday loan laws in North Dakota impose a maximum limit of $500 on the loan amount that can be issued per account. Which means that even though you can have multiple payday loans in your name with an aggregate total of up to $600, you cannot borrow more than $500 on one account. The repayment period on North Dakota quick loans cannot exceed 60 days.
How to apply for a payday loans in the state of North Dakota:
You can submit an application for a payday loan in North Dakota online or drop by a payday lender’s store. To get your loan, there are certain criteria you must meet:
- You must be 18 years old or older
- You must be an American citizen or a permanent resident of the country
- You must have a steady source of income
You have to provide some personal and work related information as part of the application process:
- Your name, date of birth, and contact information
- Your social security number and a legitimate identification, for example, your driver’s permit, international ID, or state ID
- Information about your employment
- Details about your income
Cities in North Dakota where you can find payday loan lenders:
- Devils Lake
- Grand Forks
- Valley City
- West Fargo