Posts Tagged ‘payday loan laws in Montana’

Montana Payday Loan Laws

As per Montana payday loan laws, payday lending is not just legal in this state but even extremely high rate of interest (in 3-digit APR) is also allowed. Still, things here are not that horrible as they are in many other states in the United States of America. The state laws have imposed certain legal restrictions on payday lenders in order to provide better protection to the borrowers against the predatory nature of short-term cash advance programs. If you are not sure about your legal options or want to file a complaint against your lender, you can contact the Montana Department of Administration, which is the regulatory authority for payday lending in Montana. You can fax them at (406) 841-2930, call them at (406) 841-2920, and visit their office at Division of Banking and Financial Institutions, 301 South Park, Suite 316 P.O. Box 200546 Helena MT 59620.

No Criminal Actions Can Be Taken Against Borrowers

Payday loan borrowers in the state of Montana are safe, as Montana payday loan laws strictly prohibit lenders from taking any criminal action against those who are not paying their debt on the set due date. Borrowers are even allowed to request ‘stop payment’ or just close their bank account in order to restrict access of their bank account to the lender. It is just that a written must be sent to the lenders in advance informing them that you are going to close your account and that you will pay off the outstanding balance as soon as you arrange the fund. You do not need to seek their permission; you just need to send them a letter of information. Non-payment of debt in this state is a civil offence and you cannot be sent to jail for this. Lenders can file civil against you, but that is also very unlikely because payday lenders often try to avoid legal troubles. Therefore, if you are looking out for ways on how to get rid of the payday debt troubles you are in, you should stay calm and pay no attention to the threats of legal actions by lenders. The chances are that they will soon offer you an affordable repayment plan (or accept your proposal if you send one) to get their money back. Though repayment plan is not mandatory, but lenders often accept such proposals in Montana, but things will depend on how educated you are about the laws and how well you can negotiate with them.

Collection Fees

When you default on a loan, Montana payday loan laws allow your lender to charge an array of collection fees that may include reasonable attorney fee (if disclosed in the loan contract), court costs, and a one time NSF fee of $30.

No Automatic Rollovers

Another good news for the borrowers is that the state laws have also prohibited automatic rollovers or renewals or refinance or extension. Your lender cannot force you to borrow another loan from them to pay off a previous loan. No further interest can be charged on that account.

Maximum Number Of Loans And Maximum Loan Amount

Payday lenders in Montana cannot issue more than $300 of cash advance to a single borrower in one account. Besides that, the borrowers are also requested not to have more than two outstanding loans in their name at one time.

APR And Other Fees

A maximum Annual Percentage Rate of up to 650% can be charged on payday loans in Montana. Besides that, they are also allowed to charge additional finance charges which must not exceed $25 on a $100 of loan issued for a repayment period of fourteen days.

Repayment Period

As per Montana payday loan laws, the repayment period on short-term cash advances cannot be more than thirty one days.

Custom Search

Basic Things You Must Know About Bankruptcy Dismissal

When you file a petition for bankruptcy and the court rejects your petition on certain grounds, it is legally termed as bankruptcy dismissal. Dismissal means your case is officially closed and that the court will make no further rulings on your case. Some of the most common reasons why a petition is...

Credit Repair

Building Credit With No Credit

When it comes to building credit with no credit, there are several online canadian pharmacy factors that you need to take into account. Just because you do not have any credit history at present, it does not mean you will never have one. No one is born with a readymade credit history. You have to gi...

Credit Repair

A Loan To Defeat All Loans Debt Relief Loan
Payday loans fax-free payday loans and instant online payday loans are everywhere be it on the Internet newspapers or television. Today when the economy is in turmoil these loans look like the saving gra... Read more

Tips On How To Consolidate Payday Loan Debt
You may need to consolidate payday loan debt when you are caught in the middle of a financial crisis arising out of your inability to repay multiple loans. Debt consolidation loan allows you to consolidate all... Read more

Do Not Put Up With Debt Collectors Harassment
There was an emergency and the need arose to take a payday loan. It seemed to be the fastest and the best option available then. However now the debt collectors harassment is horrendous. The fact that using t... Read more

Consolidate Payday Advances To Save Yourself
Payday advances are loans taken against a persons paycheck. They have a way of digging into your paycheck month after month. They usually have exorbitant interest rates though the sites offering the services... Read more

Can I Consolidate Payday Loans
Can I consolidate payday loans is a question you are sure to ask yourself when faced with a trying financial situation. When payment of loans becomes difficult it is possible to consolidate and replace many... Read more

What are the pros and cons of debt consolidation?