What a title loan costs — before Montana’s rules
A title loan is usually a single-payment loan due in 15–30 days at around 25% per month — roughly 300% APR — secured by your vehicle. The defining risk is not the rate but the collateral: miss a payment and the lender can repossess the car, and research finds about one in five borrowers eventually loses the vehicle. Where a state caps rates low, single-payment title lending is not offered and a loan above the cap is generally void.
The law in Montana
- Rate cap
- 36% APR maximum, all-in (including every fee), on payday and title loans, established by voter Initiative I-164 (2010). Deferred deposit lenders may not charge more than 36% per annum (MCA 31-1-722); the consumer loan ceiling is 36% (MCA 32-5-301).
- Key law
- Initiative I-164 (2010); MCA 31-1-722 and 32-5-301 (Consumer Loan Act). Montana’s former dedicated Title Loan Act (MCA 31-1-801 et seq.) has been repealed.
- Enforcement
- The Montana Division of Banking and Financial Institutions administers the caps; the 36% all-in ceiling is far below title-lending economics.
Voter Initiative I-164 (2010) capped payday and title loan APR at 36%, and Montana’s dedicated Title Loan Act (MCA 31-1-801 et seq.) is now repealed.
What it means for a Montana borrower
High-cost single-payment car title loans are effectively banned in Montana. The 36% all-in APR cap makes traditional title lending (200–400% APR) unprofitable, and the standalone Title Loan Act was repealed after the cap took effect.
If you already have a title loan in Montana
A loan that violates Montana’s ban may be partly or fully unenforceable — which changes your options with the lender and any collector. This is general information, not legal advice.
- Check whether the lender is licensed in Montana — many high-cost online lenders are not.
- Revoke ACH authorization in writing to stop automatic withdrawals from your account.
- File a complaint with the Montana attorney general and the CFPB.
- Ask whether the balance is even collectable under Montana law before you pay a collector.
Cheaper first — try these before a title loan in Montana
Title Loans and tribal lenders in Montana
Many online lenders that market title loans to Montana 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 Montana residents and how state law applies to them, see the Montana tribal-lending page.
Tribal loans in Montana →Frequently asked questions
Are title loans legal in Montana?
In Montana, a high-cost single-payment title loan is not legally viable. The state’s rate cap or an outright ban makes a ~300% APR title loan void or unavailable, so licensed title lenders do not operate — and a lender that lends anyway is on weak legal footing.
What is the maximum title loan rate in Montana?
36% APR maximum, all-in (including every fee), on payday and title loans, established by voter Initiative I-164 (2010). Deferred deposit lenders may not charge more than 36% per annum (MCA 31-1-722); the consumer loan ceiling is 36% (MCA 32-5-301).
What can I do about a title loan I already have in Montana?
Because Montana effectively bans high-cost title loans, a loan that exceeds the state limit may be partly or fully uncollectible. Check whether the lender is licensed in Montana — many high-cost online lenders are not. This is general information, not legal advice.