Montana
Montana Payday Advance Customers Can Make Own Decisions
Jeff Mangan served two terms in the Montana House (1999-2002) and one term in the Senate (2003-2006).
Section
Payday Loans in Montana
Payday Loan Laws in Montana (2026)
High-cost payday loans are gone in Montana. In 2010, nearly 72% of voters passed Initiative I-164, capping the APR on payday and title loans at 36%, all fees included. Because that absorbs every charge, the old triple-digit payday product simply stopped operating — there are effectively no payday lenders left in the state.
| Status | Legal in name, but capped at 36% APR — payday effectively ended |
|---|---|
| APR cap | 36%, all-inclusive (Initiative I-164, 2010) |
| Voter approval | About 72% in 2010 |
| Previous cap | Up to ~400% APR before I-164 |
| Permitted extra fees | Only insufficient-funds fees (up to $30) |
| Effect | Effectively no licensed payday lenders operate in Montana |
| Regulator | Montana Division of Banking and Financial Institutions |
| Law | Initiative I-164 (2010); Montana Deferred Deposit Loan Act, MCA 31-1-722 |
What Montana's 36% cap means for you
- Montana voters approved the 36% cap by nearly 72% in 2010 — one of the most decisive payday votes in the country.
- The cap is all-inclusive: interest plus any fees must fit within 36% APR, so lenders can't add separate charges to get around it.
- Because the math no longer works for lenders, storefront payday lending effectively ended in Montana.
- Only limited insufficient-funds fees (up to $30) may be added — there is no separate payday “finance charge.”
Problem with a lender? File a complaint
Consumer lending in Montana is overseen by the Division of Banking and Financial Institutions. To report a violation or an illegal lender, use the online complaint form.
Alternatives to a payday loan
With the 36% cap, look to a credit-union small loan or payday-alternative loan, an employer paycheck advance, or nonprofit credit counseling. See our guide to payday loans and alternatives.
Your debt rights in Montana
A lender can garnish wages in Montana only after it sues and wins a court judgment, and federal law then caps how much can be taken. Montana does not run a statewide payday-loan database, so limits on how many loans you can hold are harder to track from lender to lender. Your rights when you cannot repay are set by a mix of federal and state law — these guides explain how they work:
- Can a payday lender sue you?
- Can payday loans garnish your wages?
- Do payday loans affect your credit?
- Payday loan statute of limitations
- How many payday loans can you have?
- How to get out of payday loan debt
Disclaimer: general information, not legal or financial advice. Laws change — verify the current rules with the Montana Division of Banking and Financial Institutions before borrowing. Last reviewed 2026.
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Frequently asked
Are payday loans legal in Montana?
They are legal in name, but a 2010 voter-approved 36% APR cap (Initiative I-164) made the high-cost payday product unprofitable, so storefront payday lending has effectively ended.
What is Montana's payday loan interest cap?
36% APR, all-inclusive — interest and every fee must fit within that rate, aside from limited insufficient-funds fees.
Can I still get a payday loan in Montana?
In practice, no. The 36% cap drove high-cost payday lenders out of the state; you would need to look at lower-cost alternatives.
Who regulates lending in Montana?
The Montana Division of Banking and Financial Institutions, within the Department of Administration.
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