What is the Amount Borrowers Can Get With A Payday Loan in North Dakota?
- Borrowers can get a maximum of $500, but the minimum sum limit has not been set.
Payday loan transactions conducted by licensed lenders with any customer whose value of combined outstanding loans is more than $600 are forbidden. That outstanding amount should be paid to the lender or another licensed party according to N.D. Cent. Code 13-08-01 et seq.
The Rates, Fees and Other Charges for a Payday Loan in North Dakota
- A loan can be charged with percentage rates peaking at 20% by lending companies operating in North Dakota, indicating that customers are required to pay up to $20 on each $100 borrowed.
Licensed lenders are entitled to charge a fee for payday loans services, so long as the fee is not greater than 20% of the amount being paid to the borrower by the lender. Fees are not permitted to be considered interest for any purpose. No other fees or billings may be assessed for the payday loan services, apart from a fee no greater than the cost to the licensed lender. It may be charged for initiating a transaction and storing it on a database administered or permitted by the state commissioner. (N.D. Cent. Code 13-08-01 et seq.)
For the average $300 payday loan, Real APR in North Dakota can be up to 487% (According to the Center for Responsible Lending 2019).
With a 14 days term:
Loan cost: $100* 487%* (14/365)=$18.7
To return: Principal + Loan cost=$100+$18.7=$118.7
How Long Does It Take To Repay A Payday Loan in North Dakota?
- Borrowers in North Dakota can keep a loan for 60 days, whereas the average for other states is 30 days only.
- North Dakota does not forbid rollovers, nevertheless, the fee amount is not allowed to exceed 20% of the loan.
- There should be a cooling-off period of 3 business days before the next consecutive loan.
Lenders are not supposed to check a borrower’s ability to repay a loan from July 2020. You need to evaluate your financial situation in case you get into a debt trap. The CFPB changed the rule.
- Suppose that the client closes their bank account or if a borrower who passes a check recognizes that there is no money on the account, collection charges ($20) may be filed.
- If a customer is not able to repay the loan in time, lenders in North Dakota are not allowed to file charges in court to return the funds.
Contact the North Dakota Department of Financial Institutions (DFI), if you need any assistance in regard to payday loans.