What North Dakota calls a payday loan
North Dakota uses “deferred presentment” for payday lending. You receive the advance first; the lender agrees to later cash your check or take payment from your account. The protections of the state and lender restrictions for this transaction are in Chapter 13-08.
Companies providing this service to a customer in North Dakota must have the necessary state licenses, including if the service is provided online. The legal name of the lender is in the contract. Look up the legal name in the NMLS Consumer Access to locate the lender's North Dakota license. Confirm the company's contact information and name on the license. The license does not indicate that a loan is approved or that a specific loan is available.
Separate the cash advance from the repayment
The cash you can receive in a single transaction is limited to $500. A different limit applies to your debt. The total amount you owe across licensed deferred presentment providers cannot be more than $600. The $600 limit includes the debt you owe, and does not allow you to get cash borrowing up to $600.
Check your service charge against the cash you actually receive. It will be 20% or less of the cash. The law allows one additional charge for the database registration and permits a lender to charge you for the cost of registering your transaction. The lender cannot add a mark-up or other service charges to the cost of registering your transaction.
| Part of the transaction | Amount |
|---|---|
| Money advanced to you | $300 |
| Service fee | $300 × 20% = $60 |
| Repayment before any permitted database fee | $300 + $60 = $360 |
This is not a loan offer. If a permitted database fee applies, it will be added to the amount due. To know the full repayment amount and collection date, read your agreement. Do not compare offers based on the service fee only.
A $60 fee on a $300 advance, due in 14 days, is an APR of 521% using a 365-day year, and ignoring any database fees. The calculation is ($60 ÷ $300) × (365 ÷ 14) × 100. APR shows the price in terms of an annual charge. In this case, it does not mean that the charge is 521% over a two week period. North Dakota's law does not define the service charge as an interest charge. However, the lender is required to disclose APR.
The database check and the three-business-day gap
Lenders need to check a state transaction database to determine a borrower’s eligibility and record the advance. According to the deferred-presentment administrative rules, lenders must obtain a transaction authorization number in order to advance money. Your agreement must contain the transaction authorization number, and you must be provided with a copy of the agreement.
A lender can't start a new deferred-presentment transaction with you within three business days of completing a previous one. Paying the balance today doesn’t allow you to take a new advance today. Keep your proof of payment and ask the lender to verify that the database entry has been closed and when you can take your next one.
The written agreement must have the name of the lender, the amount owed, fees in dollars, the APR, and the date collection is authorized. Read the cancellation notice above the signature line before signing. The lender cannot require you to put up property, a vehicle title, or a mortgage as a condition of this transaction.
Returning the money or paying before collection
You have until closing time on the business day after receiving the advance to return the money and cancel the transaction. You must tell the lender of the cancelation, and return the money during this window to avoid being charged. Be sure to keep a copy of the cancellation and a date stamp to verify the time of cancellation. It is unlawful to charge a service, transaction, or database verification fee; the lender must immediately close the database entry.
You shouldn't have to find a different way to repay an electronically funded advance just because you have to cancel it. Your lender has to let you use the same electronic payment method it originally used to send you the money. Ask how to make the payment to arrange for it to be sent early enough to meet the cancellation deadline.
You can make a payment before the due date of the scheduled collection. If it is a check-based transaction, you can pay the lender to retrieve your check before it is presented for payment. In an electronic transaction, you can make the payment before the due date of the agreed collection. The administrative rules require a receipt when you make payment in cash. Make sure you request and obtain a payoff amount and confirmation from the lender that he/she will not also collect the check or debit.
One renewal is different from a hardship workout
A regular renewal is a single extension that can not be repeated, and must be at least 15 calendar days. The original term and extension must combined be less than or equal to 60 calendar days. The renewal fee can not exceed 20% of the total amount being renewed. The fee must be paid using a cashier's check, cash, or money order. The renewal fee buys additional time to pay and does not clear the advance. Ask what is payable at the time of the extension and what will be payable at the end of the renewal period.
Your loan can be put on a workout agreement if financial hardship prevents you from paying it in full at the original or renewed due date. Both you and the lender must agree to it voluntarily. The lender is not required to put it on a workout agreement. The terms must be written and stipulate equal weekly, every other week, or monthly payments to be made over a period of no more than 12 months. Extra interest and/or fees are not allowed during the workout. The debt remains open in the database while you repay it.
A lender cannot use proceeds from another advance it makes to you to renew, repay, refinance, or combine your existing transaction with that same lender. Contact your biller(s) to change the due date or to split the balance due if you will not have enough money to cover the payment. Other payday loan alternatives may be able to assist you with the underlying expense, but the availability and terms of these options may vary.
If a payment is returned or a charge is disputed
Have a lender identify the authority for any charge following a failed payment. For a return fee agreed to in your contract, Section 13-08-12(7) directs to Section 6-08-16(2)(c) and its $40 ceiling for collection costs. A separate administrative provision, Section 13-06-01-12, addresses third-party collection contracts. Those contracts must state a $20 ceiling for a returned check fee per transaction. These provisions do not allow a lender to automatically combine the two fees or to add default fees. Request a breakdown of the charge and take a disputed amount to the state regulator.
For a customer authorized to write the check or approve the debit, the payday statute bars criminal penalties for the transaction, unless the account was already closed on the original transaction date. A lender cannot threaten a criminal penalty which is barred by the statute. Civil collection is still permissible and a consumer should respond to any court papers in the case by the deadline to respond.
Keep your agreement, payment receipts, and account records. Include copies of any messages related to the problem. The North Dakota Department of Financial Institutions has an online process for submitting a complaint. You can also submit the complaint using their downloadable form. Be sure to include the name of the lender, the amount that is in dispute, and a summary of what happened. Also include copies of your supporting records.
Rules reviewed on October 3, 2026. This guide will discuss North Dakota deferred-presentment transactions, and other types of credit may vary with different rules.