Montana

Requirements: Every payday loan lender is required to obtain a license in the state of Montana. In order to qualify for a license an applicant must have sufficient amount of funds (at least $25,000 for each location). They must also provide a list of resources, assets, liabilities, and sources of income.

Loan terms: Payday loan terms in Montana cannot exceed 31 days.

Loan amount: In the state of Montana, the total amount of the loan excluding fees cannot exceed $300. The minimal amount that can be taken out on a payday loan is $50.

Fees: In Montana the maximum amount that can be charged for fees is 25% of the principal amount of the payday loan. If there are insufficient funds or if the consumer is unable to pay the loan back on time, a fee not to exceed $15 can be applied. This fee can only be added on once.

Prohibited acts: A payday loan lender cannot threaten legal action against customers who default on their loan. Also, a lender cannot divide the payday loan into two in hopes charging additional fees.

Loan agreement: Montana is one of the only states that don’t have written provisions about loan agreements. Payday loan lenders in Montana are not required by law to provide their customers with a schedule of all fees before they apply.