Payday allowed

Borrowing in North Dakota: What State Law Allows

Payday loans are legal in North Dakota, with a fee cap, a statewide database and a short leash on renewals. Other licensed lenders are held to 36%. Here is how the rules fit together.

By Lendmira Editorial Team Updated October 13, 2026 6 min read

Payday loan maximum: $500, fee up to 20%
Title loans: Not permitted
Other licensed loans: 36% APR cap
Time limit to sue on debt: 6 years

Map of the United States with North Dakota highlighted

The short version

North Dakota lets licensed lenders make payday loans of up to $500 for a fee of up to 20%, which on a two-week loan works out to an APR of about 521%. The loan, including one renewal, can't run past 60 days. Car title loans aren't available, and other licensed consumer lenders are capped at 36% APR. A creditor has six years to sue on a debt.

North Dakota lending rules at a glance

Payday loans Allowed Up to $500; fee up to 20%; 60 days max with one renewal; $600 total owed across lenders

Car title loans Not available

Rate limit on small loans 36% a year for licensed money brokers; payday fees up to 20% of the amount

Time limit to sue on a debt 6 years written contract 6 years for credit card debt

Wage garnishment Lesser of 25% or pay above 40× federal minimum wage; $20 a week less per dependent

Lender licensing and complaints North Dakota Department of Financial Institutions · Look up a lender on NMLS

How a North Dakota payday loan works

Payday loans in North Dakota are called deferred presentment services. You write a check or authorize a debit, the lender gives you cash, and it agrees to wait before depositing the check. The Department of Financial Institutions licenses each location, and Chapter 13-08 of the Century Code sets the terms.

North Dakota deferred presentment limits (N.D.C.C. 13-08-12)
Most you can receive	$500 per loan
Most you can owe across all lenders	$600
Maximum fee	20% of the amount you receive
Longest term	60 days, including one renewal
Renewals	One, for at least 15 days, with a fee of up to 20%
Waiting period	3 business days between loans
Right to cancel	By close of the next business day, at no cost

Every loan goes into a statewide database, which lenders check to enforce the $600 limit. A $20 fee on a $100 loan sounds small, but over two weeks it equals an APR of about 521%. Even if a single fee covered the full 60 days, the APR would be about 122%, and a renewal adds another fee of up to 20% of the amount renewed, which must be paid in cash, by money order or by cashier's check.

When you can't repay on time

If you can't pay off a payday loan, the lender may offer a voluntary workout agreement: equal weekly, biweekly or monthly payments over no more than 12 months, with no additional interest or fees. Ask for one in writing before you take a new loan to cover the old one.

A lender can't take a car title, a mortgage or other property as security for a payday loan.
It can't start a new loan within three business days after you finish paying off the last one, and refinancing with a new loan in that window is presumed to break the rules.
If a check bounces, collection charges are limited by state law.

Title loans and the 36% cap on other loans

North Dakota has no law authorizing car title loans. Payday lenders are barred from holding titles, and companies that make or arrange other consumer loans need a money broker license under Chapter 13-04.1, which caps finance charges at 36% a year, including the fees charged when the loan is made.

Late charges are capped at 5% of the payment, and no more than $20 per late payment on loans of $50,000 or less.
Installment loans under $2,000 must be repaid in equal payments over no more than 36 months, with no balloon payment.
On those smaller loans, refinancing and extension fees are each limited to $100 a calendar year.

If your credit is limited, read our page on borrowing with bad credit before you accept the first offer.

Time limits and wage garnishment

Under N.D.C.C. 28-01-16, a creditor has six years to sue on a contract, written or not, which covers credit cards and personal loans. After that, the debt is time-barred if you raise the deadline in court. See old debt and statutes of limitations for what can restart the clock.

After a judgment, North Dakota limits wage garnishment to the lesser of 25% of disposable earnings or the amount above 40 times the federal minimum wage a week ($290). The limit drops by another $20 a week for each dependent living with you, but you must give a signed list of dependents within 10 days of receiving the garnishment summons.

Licenses and complaints

Check the license with the Department of Financial Institutions or on NMLS Consumer Access; payday lenders need a license for each location.
Get the agreement in writing, including the fee, the due date and your right to cancel.
Submit a complaint to the Department of Financial Institutions if a licensed lender breaks these rules. You can also file with the CFPB.

Common questions

Are payday loans legal in North Dakota?

Yes. Licensed lenders can lend up to $500 for a fee of up to 20%, with a maximum of 60 days including one renewal and no more than $600 owed across all lenders.

Are title loans legal in North Dakota?

No law authorizes them. Payday lenders can't hold vehicle titles, and other licensed lenders are capped at 36% a year.

How long can a debt collector sue me in North Dakota?

Generally six years from the default on a contract debt, including credit cards.

How much of my paycheck can be garnished in North Dakota?

The lesser of 25% of disposable earnings or the amount above $290 a week, reduced by $20 a week for each dependent living with you.

Sources

Facts on this page were checked against these sources on October 13, 2026. The $290 weekly figure is 40 times the current federal minimum wage of $7.25 and changes if that wage changes.