What a title loan costs — before North Dakota’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 North Dakota
- Rate cap
- No title-loan authorization exists; deferred presentment providers are prohibited from taking property or title as a condition of the transaction (N.D.C.C. 13-08-12).
- Key law
- North Dakota Century Code Chapter 13-08 (Deferred Presentment Service Providers), 13-08-12(1)(f); Money Brokers Act, N.D.C.C. 13-04.1.
- Enforcement
- Regulated by the North Dakota Department of Financial Institutions. Lenders arranging loans to ND residents generally need a money-broker license, and pledging a vehicle title as loan collateral is not a permitted structure.
N.D.C.C. 13-08-12(1)(f) bars deferred-presentment lenders from receiving or holding a title to property as a condition of, or collection method for, the loan.
What it means for a North Dakota borrower
North Dakota does not have a car title loan law, and its lending statutes bar taking a vehicle title as security for these short-term loans. Any triple-digit title loan offered to a North Dakota resident would fall outside the state's licensed lending framework.
If you already have a title loan in North Dakota
A loan that violates North Dakota’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 North Dakota — many high-cost online lenders are not.
- Revoke ACH authorization in writing to stop automatic withdrawals from your account.
- File a complaint with the North Dakota attorney general and the CFPB.
- Ask whether the balance is even collectable under North Dakota law before you pay a collector.
Cheaper first — try these before a title loan in North Dakota
Title Loans and tribal lenders in North Dakota
Many online lenders that market title 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 title 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 title loan I already have in North Dakota?
Because North Dakota effectively bans high-cost title 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.