What a payday loan costs — before North Dakota’s rules
A payday loan typically costs $15–$20 per $100 borrowed for a two-week term — roughly 400% APR — and is due as a single lump sum on your next payday. That single-payment structure, not the fee on any one loan, is the trap: most fees come from borrowers who cannot clear the balance in one go and roll it over. Where a state caps rates below payday levels, licensed payday lending disappears and a loan above the cap is generally void — not legally collectible, whatever the contract says.
The law in North Dakota
- Rate cap
- 36% per year cap on money-broker fees; payday (deferred presentment) fees limited to 20% of the amount advanced, with a $500 loan max.
- Key law
- North Dakota Money Brokers Act, NDCC ch. 13-04.1 (2025 amendments extended licensing to "alternative financing").
- Enforcement
- The ND Department of Financial Institutions licenses deferred-presentment providers and money brokers. No major tribal-lender AG case verified.
North Dakota caps money-broker fees at 36%/yr and in 2025 broadened licensing to cover "alternative financing" products.
What it means for a North Dakota borrower
Licensed lending is capped and regulated, so unlicensed or tribal online loans above these limits are challengeable. North Dakota is also the home base of Turtle Mountain (Spotloan) and MHA Nation (MaxLend) lending.
If you already have a payday loan in North Dakota
A loan that violates North Dakota’s rate limits may be partly or fully unenforceable — which changes your options with the lender and any collector. This is general information, not legal advice.
- Contact the ND Department of Financial Institutions to verify licensing and file a complaint.
- Loans from unlicensed lenders are more readily contested.
Cheaper first — try these before a payday loan in North Dakota
Payday Loans and tribal lenders in North Dakota
Many online lenders that market payday loans to North Dakota residents are tribal lenders arguing their sovereignty places them outside state rate caps — a separate legal question this site tracks in depth. For which tribal brands lend to North Dakota residents and how state law applies to them, see the North Dakota tribal-lending page.
Tribal loans in North Dakota →Frequently asked questions
Does an online or tribal lender have to follow North Dakota's payday loan rules?
North Dakota applies its rules to loans made to its residents, wherever the lender sits. Tribal lenders argue that sovereign immunity puts them outside state rate caps — an argument courts have accepted in some cases and rejected in others. For which tribal brands lend to North Dakota residents and how the state treats them, see the North Dakota tribal-loan page.
What can I do about a payday loan I already have in North Dakota?
Because North Dakota restricts high-cost payday loans, a loan that exceeds the state limit may be partly or fully uncollectible — so find out before you pay a collector anything more. The steps on this page start with the lender's license. This is general information, not legal advice.