Payday Loans in North Dakota – Rules and Regulations

North Dakota has just 755,393 citizens making it the smallest state in the U.S. in terms of population. 10.7% of the population in 2016, fell below the federal poverty line which is better than the national poverty rate of 15.1%. The median household income in North Dakota is $59,114, which is bit higher than the nationwide average of $55,322. So, most of the people are doing economically fine here, but those who rely on paycheck for their living have to apply for payday loans North Dakota to arrange instant funds every now and then.

Predatory lenders exist in every state so it is very important to know about them if you are thinking to borrow a payday loan from them. They charge too high interest or function aggressive collection practices. If your lender is breaking the law to take advantage of you, that is illegal.

The States government has regulated payday lenders to protect consumers from such kind of predators. So, if you find yourself stuck with any of suspicious lender then speak up to:

2000 Schafer Street, Suite G
Bismarck, ND 58501-1204
Phone: (701) 328-9933
Fax: (701) 328-0290
Email: dfi@nd.gov

It is important to understand that the Department of Financial Institutions is a regulatory agency not a consumer protection agency and may not have the authority to act against the lenders to provide a direct benefit to the consumer. However, if state level fails, a consumer has full right to file a complaint to the Consumer Financial Protection Bureau (CFPB).Speaking up can also give courage to other citizens to do the same and hopefully it will stop the wrong doers by warning them or at most cancelling their lending license. It is also necessary for the borrowers to understand the regulations before applying for a loan which are as follows.

North Dakota Payday Loan Regulations

• Legal Status: Legal
• Interest Rate (APR): 487%*
• Minimum Loan Amount: Not Specified
• Maximum Loan Amount: $500
• Minimum Loan Term: Not Specified
• Maximum Loan Term: 60 days
• Finance Charges: 20% of the loan amount

Information for Consumers

Collection charges worth $20 would be charged if the borrowers closes their bank account or fail to keep sufficient funds in bank account to fulfill the repayment.
The Lenders in North Dakota are strictly prohibited to file charges in court if a consumer doesn’t repay the loan on due date.

North Dakota Payday Loan Rules

Whenever a payday lender grants a loan in North Dakota to the applicant, state law demands lenders must provide a clear loan agreement in a printed form to the borrower prior to the funds being given which must state following.

• A payday loan transaction is not meant to meet long-term financial needs.
• The loan amount must only be utilized to meet short-term cash needs.
• The customer will be required to pay additional fees if the loan is renewed rather than paid in full when due.
• Any information required under federal law.
• No collateral would be incurred from the applicant.

For further assistance feel free to contact the North Dakota Department of Financial Institutions.