Payday loans in North Dakota: the rules and your way out

North Dakota's rules, line by line

Largest loan

$500 disbursed per transaction (N.D.C.C. 13-08-12(3)); a customer's total outstanding deferred presentment obligations, with the same or any other licensee, may not exceed $600 (13-08-12(4), (16)).

Longest term

60 days total, including the initial deferral and one renewal; a renewal period may not be shorter than 15 days (13-08-12(12)).

Fee or rate cap

"A licensee may charge a fee for the deferred presentment service, not to exceed twenty percent of the amount paid to the customer by the licensee. This fee may not be deemed interest for any purpose of law." No other fee, except a fee up to the licensee's cost for registering the transaction in the commissioner's database (13-08-12(2)). Renewal fee also capped at 20% of the amount renewed (13-08-12(12)).

Renewals and rollovers

One renewal only, with a renewal fee of up to 20% paid in cash, money order or cashier's check; total deferral may not exceed 60 days, then the loan must be paid off or the check deposited (13-08-12(12)). A licensee may not renew, repay, refinance or consolidate with the proceeds of another deferred presentment transaction (13-08-12(14)).

Waiting period between loans

3 business days. A licensee may not enter a new transaction with a customer within three business days after the customer completes a previous one (13-08-12(4)); a new transaction started within three business days before completion of another is presumed to be an illegal refinance (13-08-12(14)).

Loans at once

No numeric limit on loan count; aggregate outstanding obligations to all licensees may not exceed $600, verified through the commissioner's database (13-08-12(4)).

Payment plan if you cannot pay

Not required. A licensee may (voluntarily) enter a written workout agreement if the borrower believes financial hardship prevents payoff at the end of the original term or a renewal: weekly, biweekly or monthly even installments over no more than 12 months, with no additional interest or fees. Both sides must agree; the borrower should ask the lender (13-08-12(13)).

State loan database

Yes. The commissioner administers or authorizes a database in which each transaction must be recorded, and licensees must verify a customer's outstanding obligations through it rather than rely on the customer's word (13-08-12(4)). Database name not confirmed.

Limits on collection

On a returned check or electronic debit (insufficient funds, closed account or stop payment), the licensee may use civil remedies and may collect one returned check/debit charge no greater than the collection fees and costs allowed under N.D.C.C. 6-08-16 (which caps collection fees or costs at $40); no other fee for a returned item or default (13-08-12(7)). A customer is not subject to criminal penalty over the check, debit or agreement unless the account was closed on the date of the transaction, and the licensee may not pursue or threaten such prosecution (13-08-12(8)). No property, titles or mortgages may be taken as a condition of the loan or to collect a default without civil process (13-08-12(1)(f), (2)). Willful violations are a class A misdemeanor (13-08-12(17)).

Other rights

Right to rescind at no cost by the close of the business day after receiving the funds (13-08-12(6)). May redeem the check or repay an electronic transaction at any time before the due date (13-08-12(6)). Agreement may not contain a hold-harmless clause, confession of judgment, wage assignment, waiver of claims or of the chapter, or any statement about criminal prosecution (13-08-12(6)). Licensee must post its license number and instructions for checking it on NMLS (13-08-06(2)).

If you are behind on a payday loan in North Dakota

1. Stop the automatic withdrawals if they are emptying your account. You can revoke the lender's permission to debit your account and tell your bank. How to do it.
2. Look at a credit union payday alternative loan. Federal credit unions can lend $200 to $2,000 at much lower cost. How they work.
3. Talk to a nonprofit credit counselor. A counselor can look at all your bills, not just this one. How to find a real one.

Check a lender, or report one

• Check whether a lender is licensed in North Dakota
• File a complaint with the North Dakota Department of Financial Institutions (Commissioner of Financial Institutions)
• File a complaint with the Consumer Financial Protection Bureau

Sources

• N.D.C.C. chapter 13-08, Deferred Presentment Service Providers, read 2026-10-24
• N.D.C.C. chapter 6-08 (incl. 6-08-16, insufficient-funds checks; collection fees), read 2026-10-24

This page summarizes the law; it is not legal advice. Laws change, and the statute and regulator control. If something here is out of date, write to hello@paydayloan.help.