Montana payday loan laws is the answer to “are payday loans legal in Montana”. This guide gives the Montana figures in a dated table, explains in plain words what they mean, walks through the steps, and points to the official forms and free help.
The Montana payday loan laws figures on this page were verified against a dated 50-state compilation and Montana sources as of October 2026; the statute named here is where to check them yourself.
Montana payday loan laws at a Glance
| Status | Restricted |
| Fee or APR cap | 36% APR |
| Maximum loan | $300 |
| Maximum term | up to 31 days |
| Statute | MCA 31-1-701 et seq. |
In This Montana payday loan laws Guide:
What Montana Payday Loan Laws Cover
A payday loan (Montana law calls it a “deferred deposit loan”) is a small, short-term loan. You give the lender a postdated check or permission to take money from your bank account on your next payday. Since voters passed Initiative I-164 in 2010 (effective January 1, 2011), the interest cap counts every fee and charge. That makes the traditional payday model unprofitable.
The Montana Division of Banking says there are currently no licensed deferred deposit lenders in the state.
The Montana payday loan laws Figures
| Rule | Bonus Bank Daily verified figure |
|---|---|
| Status | Restrictedcompilation / agency — verified Oct 2026 |
| Fee or APR cap | 36% APRcompilation / agency — verified Oct 2026 |
| Maximum loan | $300compilation / agency — verified Oct 2026 |
| Maximum term | up to 31 dayscompilation / agency — verified Oct 2026 |
| Statute | MCA 31-1-701 et seq.compilation / agency — verified Oct 2026 |
The Montana payday loan laws figures on this page were verified against a dated 50-state compilation and Montana sources as of October 2026; the statute named here is where to check them yourself.
What a Loan Costs Under Montana Payday Loan Laws
Under the cap, a $200 loan repaid after 14 days could cost no more than about $2.76 in total (200 × the annual cap × 14/365). Before 2011, Montana payday lenders could charge fees of one-fourth of the loan amount. On that same $200 loan, the fee would have been $50, which the Division of Banking said worked out to annual rates between 300% and 650%.
A quoted fee much higher than a few dollars on a small two-week loan is generally a sign the lender is not following Montana’s limit.
Online Lenders and Montana Payday Loan Laws
The law says no one may make or offer deferred deposit loans to Montanans without a license from the Division of Banking. It also says lenders outside Montana who use the internet, fax or third parties to deal with Montana consumers fall under the licensing rules.
Some online lenders claim tribal sovereign immunity to avoid state rate caps, and how far Montana can enforce its law against them is not settled. Licensing is done through NMLS, so you can look a lender up on NMLS Consumer Access or call the Division at 406-841-2920.
Your Rights Under Montana Payday Loan Laws
Borrowers often have rights to a repayment plan, limits on bounced-check fees, and the federal right to stop a lender’s automatic withdrawals by notifying the bank.
Alternatives to Loans Under Montana Payday Loan Laws
Montana credit unions and banks may offer small-dollar loans, and Montana’s interest cap also applies to consumer installment loans. Other options include asking your employer for a paycheck advance or asking the original creditor (utility, landlord, medical provider) for a payment plan. Montana Legal Services Association advises borrowers with a loan priced above the cap to talk to an attorney, and its help is free if you qualify.
Reporting a Lender That Breaks Montana Payday Loan Laws
The Division of Banking and Financial Institutions asks you to contact the company first. If that doesn’t resolve it, the Division requires a written complaint by email, mail or fax and will not review complaints made by phone. The law allows complaints against licensed and unlicensed lenders. You can also file with the CFPB at consumerfinance.gov/complaint.
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Keep the loan agreement, payment records, bank statements showing withdrawals, and copies of all emails, texts and letters from the lender.
Common Mistakes With Montana payday loan laws
The most common mistake is missing a deadline: court and creditor deadlines run whether or not you have read the papers, and a missed one usually cannot be undone. The second is relying on an old article or a friend’s experience in another state — the rules on this page differ from state to state and change often, which is why every figure here is dated.
The third is not keeping copies: every letter, form, receipt and bank statement may matter later, so keep them together and note the date you received each one.
Free Help With Montana payday loan laws in Montana
You do not have to handle this alone or pay to get answers. The Montana court self-help center explains the forms and the steps, and court clerks can tell you where and how to file, although they cannot give legal advice.
Legal aid organizations represent many people at no cost when income is limited, and the Montana bar’s lawyer referral service can connect you with a lawyer for a low-cost first consultation. The Consumer Financial Protection Bureau accepts complaints about lenders, banks and debt collectors nationwide.
How We Verify the Montana payday loan laws Figures
Every figure in the table above comes from our 50-state data file, built by reading the Montana statute or an official compilation of it, and each one carries the month we last checked it. Our writers do not change those figures; they explain them. When the law changes, the figure is updated and the date moves.
If something on this page no longer matches the statute, the statute controls — and we want to hear about it.
I-164 also prohibits businesses from structuring other kinds of transactions to get around the rate limit. The same cap applies to car title loans and consumer installment loans, so a high-cost loan relabeled as something else generally faces the same limit.
Next rung: the Montana maximum interest rate page shows the general cap behind these limits.
Montana — the bottom line
- Montana payday loan laws decide whether a payday loan can be offered at all, and at what cost — the status and cap are in the table above.
- Under Montana payday loan laws, licensed lenders must follow the fee, size and rollover limits; an unlicensed lender is a red flag.
- If a lender breaks the Montana payday loan laws, report it to the regulator named in the table.
Montana Payday Loan Laws FAQ
Are payday loans legal in Montana?
Only in a restricted form, under the limits in the table above.
Official Montana Sources & Resources
- Statute and the National Conference of State Legislatures payday lending statute summary — payday and small loans: https://www.ncsl.org/financial-services/payday-lending-state-statutes
- Montana statute / opinion: https://archive.legmt.gov/bills/mca/title_0310/chapter_0010/part_0070/sections_index.html
- Montana Division of Banking and Financial Institutions — Deferred Deposit Lenders: https://banking.mt.gov/MortgageConsumerFinance/ddl
- Consumer Financial Protection Bureau: consumerfinance.gov
This Montana payday loan laws guide was last verified against official Montana sources in October 2026. Rules change — confirm the current rule with the statute or a licensed attorney.
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Disclaimer: This guide is general information, not legal or financial advice. Bonus Bank Daily is an independent educational resource — not a law firm, not a bank, not a debt collector and not a government agency. Judgment, levy, interest-rate and debt rules change — every figure here carries the date we verified it.
Confirm the current rule with the statute, the court clerk or a licensed attorney in your state before you act.