Payday Loan Laws and Regulations in North Dakota (ND)

Payday loans are legal in North Dakota, but they can only be offered by lenders who comply with state statutes - specifically the North Dakota Century Code sections governing short‑term loans. The law sets clear caps on loan size, fees, and how the loan can be rolled over, and it also outlines consumer‑protective measures such as a cooling‑off period and limits on collection practices.

• Legal status: Licensed payday lenders may operate in the state under N.D. Cent. Code §13‑08‑01 et seq. [paydayloaninfo.org](https://paydayloaninfo.org/states/north-dakota/)
• Maximum loan amount: $500 per loan [paydayloaninfo.org](https://paydayloaninfo.org/states/north-dakota/)
• Loan term limit: up to 60 days [paydayloaninfo.org](https://paydayloaninfo.org/states/north-dakota/)
• Finance charge cap: 20 % of the amount advanced (e.g., a $100 loan may carry a $20 fee) [paydayloaninfo.org](https://paydayloaninfo.org/states/north-dakota/)
• Rollovers: One rollover is allowed, but a new loan may not be used to pay off the original [paydayloaninfo.org](https://paydayloaninfo.org/states/north-dakota/)
• Cooling‑off period: 3 days before a borrower can cancel [paydayloaninfo.org](https://paydayloaninfo.org/states/north-dakota/)
• Collection fee limit: NSF fees may not exceed $40 [paydayloaninfo.org](https://paydayloaninfo.org/states/north-dakota/)
• Criminal action: Lenders cannot pursue criminal charges for non‑payment [paydayloaninfo.org](https://paydayloaninfo.org/states/north-dakota/)

Always verify that a lender is registered with the North Dakota Department of Financial Institutions before borrowing.

North Dakota law places a cap on how much a borrower can receive through a payday loan, and it also limits the total amount that can be owed across all payday lenders at any one time. The exact dollar limits are set in state statutes and may be adjusted over time, so the amount you can borrow will depend on the current provisions of the North Dakota Century Code as well as the individual lender's policies.

Because the caps are statutory, they apply to all licensed payday lenders in the state, but many lenders choose to offer loans below the maximum allowed. Before applying, review the lender's disclosure and check the latest version of the North Dakota Century Code or contact the state regulator to confirm the present borrowing limits.

North Dakota limits both the annual percentage rate (APR) and the dollar‑amount fees that lenders may charge on small‑dollar installment loans (generally $2,500 or less) covered by Senate Bill 2103. The caps are fixed by law, not a percentage of the loan balance, and the 6 % rate you may see elsewhere refers only to statutory interest on court judgments - not to consumer loan APRs.

• **APR ceiling:** Lenders cannot charge an APR higher than 36 percent for the qualifying small‑dollar loans.
• **Fee limit for loans up to $500:** The maximum fee is capped at $15 per loan.
• **Fee limit for larger loans (up to $2,500):** The law sets a higher, but still fixed, dollar‑amount fee (often cited as up to $30) that rises with the loan size; the exact amount is listed in the statutory schedule.
• **No percentage‑based fees:** All fee caps are expressed as flat dollar amounts, so a lender cannot charge, for example, '5 % of the principal' on these loans.
• **Disclosure requirement:** Every lender must provide the APR and all fees in writing before the loan is funded; borrowers should compare these disclosures across lenders.
• **Enforcement:** Any fee or APR that exceeds the statutory caps is prohibited and can be reported to the North Dakota Department of Financial Institutions.

If a fee or APR looks higher than the limits above, double‑check the lender's written disclosure and consider filing a complaint.

In North Dakota, a payday loan must be paid in full by the original due date - extensions or rollovers are not permitted by state law.

• **No extensions or renewals:** The loan cannot be lengthened, even for a short period, and the borrower must repay the entire amount on the date specified in the original agreement.
• **New loan required for additional borrowing:** After the first loan is completely satisfied, any further borrowing must be a separate, newly originated loan; the borrower must meet the lender's eligibility criteria again.
• **Illicit extension offers:** If a lender proposes an extension or 'rollover,' that practice violates North Dakota statutes and the borrower can report the lender to the state regulator.
• **Check the lender's status:** Some tribal lenders operate under different frameworks, so verify that the lender is properly licensed or authorized before signing any agreement.
• **Keep documentation:** Retain the original loan contract and the repayment schedule; knowing the exact due date helps you avoid accidental late payments that could be misconstrued as an extension.

Pay the loan by its original due date, and treat any subsequent borrowing as a brand‑new transaction that must meet all qualification requirements. If you have any doubts, consider seeking advice from a consumer‑protection attorney or the North Dakota Department of Financial Institutions.

*Always verify the terms in your loan agreement and report any illegal extension offers.*

No. North Dakota's statutes (N.D. C.C. §§ 47‑15.3 and related regulations) ban the traditional payday‑loan model - short‑term, high‑APR loans - so you cannot legally obtain even one, let alone several, payday loans in the state. Any short‑term consumer loan that does exist must stay within the state's usury limits (generally 7 % per year, with a 36 % APR ceiling for certain loans), which payday‑type products cannot meet.

What to do instead

1. Confirm the loan type - If a lender offers a loan that must be repaid in 30 days or less and charges fees that would produce an APR far above 36 %, treat it as an illegal payday loan and walk away.
2. Verify the lender's license - Check the North Dakota Department of Financial Institutions' register to ensure the lender is properly licensed for the type of loan they claim to offer. Unlicensed lenders are prohibited from providing any consumer credit.
3. Explore lawful alternatives - Consider a traditional installment loan, a credit‑union small‑loan product, or a credit‑card cash advance, all of which must comply with the 36 % APR ceiling.
4. Report suspected violations - If you encounter a lender who appears to be offering a payday‑type loan, file a complaint with the North Dakota Department of Financial Institutions to protect yourself and other consumers.
5. Keep documentation - Retain any loan agreements, advertisements, or communications. Written records help you verify compliance and provide evidence if a lender is acting illegally.

Never sign a contract that violates North Dakota's usury limits; doing so can expose you to legal penalties.

You will not be jailed simply because you failed to repay a payday loan; non‑payment is treated as a civil debt, and the state's enforcement actions are limited to collection, wage garnishment, or a judgment, not criminal incarceration. North Dakota law caps the loan amount at $500, the term at 60 days, and allows an APR of up to 520 % (as shown by the state's payday‑loan regulations) Compacom payday‑loan rules, but those provisions do not create a crime for missed payments.

However, you could face jail time if the non‑payment is tied to a criminal act, such as filing a false application, committing fraud, or willfully ignoring a court order after a judgment is entered. The North Dakota Fair Debt Collection Practices Act requires collectors to be licensed and prohibits deceptive or abusive tactics, and violations of the law can lead

civil penalties and, in extreme cases, criminal charges North Dakota debt‑collection statutes. If you receive a summons, appear in court, and comply with any order, the risk of incarceration remains low; ignore it at your own peril. Always review your loan agreement and, if unsure, consult an attorney promptly.

North Dakota Department of Financial Institutions (NDDFI) is the state agency that licenses, regulates, and examines payday lenders - referred to in law as 'deferred presentment service providers.' All non‑federal payday lending entities operating in North Dakota must be authorized by NDDFI and are subject to the state's cent‑code provisions [nd.gov](https://www.nd.gov/dfi).

To confirm a lender's status, visit the NDDFI online portal where licensed money brokers, payday lenders, and related non‑depository firms are listed. If you encounter a problem, you can submit a complaint through the department's complaint form on the same site. Safety note: if you're uncertain about a lender's legitimacy, consider seeking legal advice.

North Dakota's statutes ban payday‑loan products, so the state does not issue any licenses for payday‑loan providers. If a company says it is 'licensed' to offer payday loans in ND, the claim is contrary to state law.

To confirm whether a lender is operating legally, you can:

• clear, written terms that describe the loan as a 'payday' or similarly short‑term, high‑fee product; legitimate ND lenders do not offer these.
• North Dakota Attorney General's Office (consumer protection division) to ask if the business is under investigation or has been cited for illegal lending.
• North Dakota Department of Financial Institutions to verify that the company is registered as a bank, credit union, or other permitted lender - these entities never hold a payday‑loan license because none exists.
• If the lender provides a 'license number', request official documentation; any valid ND lender will be able to show a registration with the DFI, not a payday‑loan permit.

If you discover that a lender is claiming a payday‑loan license in North Dakota, it is almost certainly operating outside the law and should be reported to the Attorney General's Office. Never share personal or financial information with an unverified lender.

Tribal lenders are lenders that operate from lands that belong to federally recognized Native American tribes and claim protection under tribal sovereign immunity, which they argue shields them from state usury and licensing rules. In North Dakota, state law that caps payday‑loan fees and sets licensing requirements applies to lenders that are physically located in the state or that are otherwise subject to state regulation, but it does not automatically extend to a tribal entity that conducts business online from tribal land. Because of this legal gap, a tribal lender can market a loan to a North Dakota resident even though the loan would not be subject to the state's 20 % finance‑fee cap or other consumer‑protection provisions [debthammer.org](https://debthammer.org/tribal-payday-loans/) [natlawreview.com](https://natlawreview.com/article/states-and-consumers-battle-tribal-pay…).

• Example: A resident of Fargo logs onto a tribal payday‑loan website that is run from a reservation in another state. The loan agreement lists an APR that falls in the 440 % - 1,000 % range [debthammer.org](https://debthammer.org/tribal-payday-loans/); the borrower's repayment schedule is set up as biweekly installments, which can cause the balance to grow quickly through compounding. Because the lender is not licensed by the North Dakota State Banking Department, the borrower cannot file a complaint with that agency, and state‑level caps on fees do not apply. Before proceeding, the borrower should verify whether the lender holds any federal licensing, read the full contract for repayment terms, and consider alternative, state‑regulated options. Always verify the lender's licensing status and read the loan agreement carefully before borrowing.

state‑chartered institution (such as a bank or credit union) or a non‑depository payday lender; state‑chartered firms fall under the North Dakota Department of Financial Institutions, which accepts online submissions or a printable PDF complaint form on its website North Dakota Department of Financial Institutions complaint page, while non‑depository lenders are overseen by the Consumer Financial Protection Bureau and can be reported through the CFPB's online portal after you confirm the lender's license status (the DFI's search tools can help with that);

additionally, any North Dakota resident may lodge a consumer‑fraud complaint with the Attorney General's Consumer Protection Division, which will attempt mediation and may forward you to another agency if needed - file online or download the PDF from the Attorney General's site North Dakota Attorney General consumer complaints, and be sure to include copies of the loan agreement, statements, and any correspondence when you submit your complaint  - only share personal information on secure .gov pages.