Borrowing in Idaho: What State Law Allows

Payday loans: the price is whatever you agree to

Payday lenders need a license from the Idaho Department of Finance and must follow Part 4 of Chapter 46 of the Idaho Credit Code. The law says a lender may charge a fee for each payday loan but sets no dollar or percentage ceiling. Instead, it requires the fee to be disclosed both in dollars and as an APR, and posted in every store as a dollar amount per $100 borrowed. No other fees are allowed unless the law names them.

• Size: no more than $1,000 in principal outstanding with one lender, and no single loan above 25% of your gross monthly income when it's made.
• Renewals: no more than three in a row. After that the loan must be repaid.
• Payment plan: once every 12 months you can ask for an extended payment plan of at least four equal payments over at least 60 days, with no added interest or fees. You must sign it by the day the loan is due.
• Bank debits: the lender can't present your check electronically more than two extra times.

Title loans: 30 days at a time, renewed automatically

Idaho's Title Loan Act lets licensed lenders take your car title as security. Each agreement can run no more than 30 days, but it can renew automatically unless you pay in full, surrender the car or get notice that it won't be renewed. The number of renewals isn't capped, and neither is the rate.

• Starting with the third renewal, you must pay at least 10% of the original principal plus the finance charge each time, so the debt shrinks.
• The lender must send written notice of each automatic renewal within 14 days.
• You can cancel by returning the money by the end of the next business day.

If you default, the lender can repossess the vehicle. Paying only the finance charge month after month is how a title loan ends up costing more than the amount you borrowed.

Other licensed lenders

The same hands-off approach applies to regulated lenders that make installment loans: the Idaho Credit Code says the finance charge rate is the one the parties agree to. That puts the burden on you to compare. A bank or credit union personal loan usually costs far less than a payday or title loan, and federal credit unions are held to an 18% APR ceiling on most loans through September 10, 2027. The APR calculator helps when a lender quotes fees and interest separately.

When a debt goes unpaid

Credit card debt sits between the two. If the creditor can produce a written agreement, the five-year period applies; a suit based only on the account may fall under four years. Assume five until a court or lawyer says otherwise, and read how statutes of limitations work before you pay on an old debt.

After a judgment, Idaho follows the federal formula: a creditor can garnish the lesser of 25% of your weekly disposable earnings or the amount above 30 times the federal minimum wage. Child support, bankruptcy orders and tax debts can take more.

Checking a lender and complaining

1. 1 Look up the license with the Idaho Department of Finance before you apply, including online.
2. 2 Get the fee in dollars and the APR in writing, and check them against the posted fee schedule.
3. 3 File a complaint with the Department of Finance if a lender ignores these rules. See debt collectors and your rights if collection turns aggressive.

Common questions