North Dakota Payday Loan Laws and Regulations

North Dakota Payday Loan Laws and Regulations

Are Payday Loans Legal in North Dakota?

Short-term Payday Loans are legal in the state of North Dakota and are mostly regulated through N.D. Cent. Code 13-08-01 et seq..

The Payday Lending legislation covers all the parts of the process concerning:

  • Payday Loan amounts
  • Payday Loan repayment terms
  • Payday Loan online direct lenders
  • Payday Loan stores near you
  • Payday Loan interest rates and other fees
  • Payday Loan collecting practices
  • Payday Loan default penalties
  • The number of outstanding Payday Loans as well as a cooling-off period in-between etc.


To see if you’re eligible for a Payday Loan in North Dakota check out the lenders’ requirements:

  • US residence
  • Minimum regular income of $1,000 per month
  • Valid checking or savings account with direct deposit
  • Phone number and e-mail address

North Dakota allows maximum 60 day(s) Payday Loan amount. It should be repaid within up to 60 days days as you get your next paycheck. Earlier payments don’t contemplate any additional fees. The maximum APR is 520.00%. For other details read further to find out how many Payday Loans you can borrow, whether rollovers or extensions are allowed, etc.

North Dakota Payday Loan Terms and Amounts

North Dakota residents who are eligible for a Payday Loan can get $500 cash advance per contract. The repayment term is capped by up to 60 days.

However, there are no limits on the purpose of loan usage. Any urgent expenses, unforeseen bills, car repair, home repair, etc. may seem a sound reason to apply for a Payday Loan in North Dakota.

If $500 is not enough, there are always other options to receive the necessary funds in North Dakota: unsecured Installment Loans, bad credit Personal Loans, Title Loans, Check Cashing, Pawn Shops, etc.

North Dakota Payday Loans online laws

Cash advances (payday loans) from both storefront and online lenders are legal in the state of North Dakota. Though online Payday Loans in North Dakota are highly available, you should be careful and apply for instant cash advance only from legal lenders registered in the state’s database. In this case, if you have a problem with a loan or a lending company, you can turn to North Dakota Department of Financial Institutions, 2000 Schafer Street, Suite G Bismarck ND 58501, (701) 328-9933 for help. But if you took an online Payday loan from an out-of-state lender over the Internet or the telephone, the help that North Dakota can provide may be limited.

Reputable online lenders operating in accordance with all relevant state and federal laws can be applied to and compared on our platform using a simple online application form.

You state the necessary amount, fill in your personal information and get suitable offers from legit direct lenders. It takes only a few minutes and doesn’t affect your credit score. 

North Dakota Payday Loans interest rates, fees, and other finance charges

The main part of the payday loan payment is mostly made up of the interest rate, or APR. The maximum APR that may be charged for short-term cash advance in North Dakota is 520.00%. It means that if you borrow $100 Payday Laon for 14 days the finance charges will be 20% of the amount advanced.

Besides, the total cost of a Payday Loan includes some additional fees. North Dakota lending rules allow to charge:

20%, plus database fee

The law obligates North Dakota Payday Loan lenders to provide you with a written disclosure of all the rates and fees in the understandable language. You should read them carefully and if you agree to acknowledge the notification by signing the contract.

North Dakota Payday Loans direct lenders regulations

According to North Dakota payday loan laws all direct lenders are obliged to register their companies which will allow issuing payday loans contract. It concerns both Online Payday Loans and Payday Loans Near Me.

The latest figure for the total number of payday lenders in North Dakota is 56. That means there are 7.4 payday lenders per 100,000 people in the state. Those 56 payday lender stores averaged 1,940 loans per store in 2013, lending out nearly $34.8 million in loans and collecting $6.9 million in fees.

The main rules regarding Payday loan lenders in North Dakota are:

  • Essential state license.
  • Complete disclosure of all the information concerning the loan such as its repayment terms, rates, fees, etc.
  • Besides, North Dakota direct lending companies are recommended to educate the customers on the possible issues related to payday loans. Borrowers must be aware of possible risks, default penalties, other consequences of short-term loans and their alternatives.
  • North Dakota laws prohibit offensive collecting practices connected with the due loans. Criminal action threats are banned and the lender is required to send a mail notification before starting any legal proceedings against expired contracts.

Nevertheless, you should be careful not to come across any scams. Some unfair lenders can operate without license or under a different license and offer too expensive ‘payday loans’ under illegal conditions. Always check that the lender you are going to apply to works under North Dakota state law.

North Dakota Payday Loans consumer information

Besides amounts, rates and fees, consumers must be also well aware of other details of Payday Loans in North Dakota. They include the availability and number of rollovers, extensions and repayment plan, a cooling-off period, any default penalties or additional fees, etc. Check out the table below to find the most essential information:

Rollovers or extensions 20%, plus database fee
Cooling-off period 20%, plus database fee
Additional fees and default penalties 20%, plus database fee
Criminal actions Prohibited

Look for more detailed information on the official North Dakota state regulator website – 20%, plus database fee,

Legitimate Payday Loans Online with NO credit check in North Dakota

Looking for a legal Payday Loan with No credit check in North Dakota? You must understand the meaning of this phrase correctly at first. No credit check implies that a lender will not inquire about your credit history information from or send your borrowing data to any of the three major credit bureaus Equifax, Experian and TransUnion.

If you don’t want to damage your credit history North Dakota law allows you to apply for a Payday Loan with No credit check. But you should understand that a lender needs to check your creditworthiness at least in some way. He can perform a soft credit check when a lender pre-approves you for a loan and this inquiry will not appear on your credit report. Or there’re other ways to prove you can afford the cash advance. Payday Loan lenders use the tracking system to verify your debts, check your income, etc. And generally, they charge higher interest to lessen the risks.

North Dakota Payday loans online no credit check are one of the easiest options of getting quick cash to cope with emergency financial requirements, especially for the people with poor credit.

Does North Dakota law allow Payday Loans for bad credit borrowers?

The average credit score in North Dakota is 668, placing it in the fair range. But it doesn’t mean that those who have a worse credit can’t apply for a Payday Loan in North Dakota. 

  • First of all, There’re a lot of legit direct lenders in North Dakota providing Payday cash advance to borrowers with both good and bad credit score.
  • Secondly, you can always find a cosigner to increase your chances of being approved for a bad credit Payday Loan.
  • Find out how to improve your credit score and do your best to do it fast. 
  • Or consider taking out a bad credit Installment Loan, or bad credit Personal Loan.

Legit Payday Loans in North Dakota collection practices

If you can’t repay the loan amount plus interest on a due date it means you default the loan. North Dakota law sets the statute of limitations for unpaid debts at five years. This means that if you do not pay back your payday lender, the lender has five years to use the court system to collect the debt.

Even if you failed to pay back the loan on time, the lenders can’t do whatever they want to get the money back, their actions are limited by North Dakota laws:

  • No criminal actions are allowed against you for a bad check.
  • The default payment costs in are limited to $20 NSF fee.
  • Only 20%, plus database fee additional fees are permitted.

If you think that your payday lender violates the North Dakota Payday Loans law, you may file a written complaint with 20%, plus database fee. The supervisor from that office interviews witnesses, reviews the payday lender’s business records and documentation, and determine whether to pursue civil or criminal charges

North Dakota Payday Loans news  – latest changes

To protect borrowers from the Payday Loan debt trap, the CFPB settled a payday loan regulation in 2017 that, among other things, required payday lenders to double-check that borrowers could afford to pay back their loan on time by verifying information like incomes, rent, and even student loan payments.

However, the Trump administration delayed these restrictions and decided to reconsider the “ability to pay” requirements as they don’t let North Dakota residents access credit. So, no changes are going to take effect until at least November 2020.

North Dakota Payday Loans historical background

1990s There was no Payday Loan regulation. Lenders operates under the name of pawn shops.
July 1, 2001 The first Payday Loan was passed and it limited the interest and charges at 20%.
2006 The Military Lending Act effectively capped payday loans offered to the military at 36% APR.
April 1, 2013 N.D. Century Code 13-08 was amended.
June 2, 2016 A Payday Loan Rule was proposed.
2019 Payday Loan regulations are still in force.

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