If you're in North Dakota and need cash, you can get a payday loan up to $500. But with APRs capped at 487%, the math gets expensive fast. Here’s your no-fluff checklist to navigate the costs, your rights, and what to do if things go wrong.
How much does a $500 payday loan actually cost?
A $500 loan will cost an extra $93.40 in fees, for a total payback of $593.40. North Dakota law sets the maximum fee at 20% of the amount you borrow. State law caps the maximum fee at 20% of the loan amount. That means for a two-week loan, the annual percentage rate (APR) hits the state's ceiling of 487%. It's a steep price for a short-term fix.
| Loan amount | Term | Typical fee | Total cost | APR |
|---|---|---|---|---|
| $100 | 14 days | $18.68 | $118.68 | 487% |
| $300 | 14 days | $56.04 | $356.04 | 487% |
| $500 | 14 days | $93.40 | $593.40 | 487% |
What are my rights as a borrower?
Your two biggest rights are the $500 loan cap and a ban on rollovers. The law, 13-08 (Deferred Presentment Service), is designed to prevent you from getting trapped in debt. Lenders cannot issue you a new loan to pay off an old one. The state also runs a database to stop you from having more than one of these loans at a time. If a lender breaks these rules—by charging the wrong fee or harassing you—you can file a dispute with the North Dakota Department of Financial Institutions, which typically resolves issues within 30–60 days.
I'm in the military. Do different rules apply?
Yes, the federal Military Lending Act caps your APR at 36%. If you are an active-duty service member or a dependent, this federal law overrides state rules. A lender must check your status and is prohibited from charging you the state's maximum 487% APR. This is a significant protection that can save you hundreds of dollars on a single loan.
What's the fastest way to file a complaint against a lender?
File a formal complaint directly with the state regulator. Here’s how:
- Gather your loan agreement and any communication with the lender.
- Visit the website of the North Dakota Department of Financial Institutions.
- Submit a detailed complaint through their online portal or via mail.
- The department aims to resolve most disputes within 30–60 days.
What are cheaper alternatives with lower APRs?
Before you commit to a high-cost loan, exhaust these options that offer dramatically lower rates.
Your Local Bank or Credit Union: If you bank with institutions like Bank of America or U.S. Bank, ask about their small-dollar loan programs. They offer loans from $100 to $1,000. Your approval is based on your account history, not your credit score, but be prepared for APRs in the 100–200% range. It's still high, but can be nearly 300 percentage points cheaper than a standard payday loan.
Emergency Assistance Programs: For help with essentials like rent or utilities, the Salvation Army has centers across the state. North Dakota LIHEAP provides energy assistance; if your household income is around 150% of the poverty line, your local county office can process an application in 2–4 weeks. These are true $0 APR options.
For a full breakdown of all possibilities, see our guide to payday loan alternatives.
Payday Loans in North Dakota: Your Questions Answered
Can I extend my payday loan if I can't pay it back?
No. North Dakota law explicitly prohibits rollovers. You cannot take out a new loan to pay off an existing one. The lender must offer you a repayment plan instead, which gives you at least 60 additional days to pay back the principal without any new fees.
Is there a cooling-off period between loans?
No, North Dakota state law does not mandate a statutory cooling-off period. However, the statewide database prevents you from having more than one payday loan at a time, which effectively creates a forced break after you pay one off.
How is the 487% APR calculated?
The APR is an annualized cost. For a 14-day, $500 loan with a $93.40 fee (20% of the principal), the math works out to an annual percentage rate of 487%. It’s the standardized way to show the cost of borrowing, even for very short terms.
What happens if I bounce a check to the lender?
You will likely face NSF fees from your own bank, and the lender may charge you a returned-check fee. Critically, you are still legally obligated to repay the full amount of the loan and its original fee. Contact the lender immediately to arrange payment and avoid further collection actions.
Where can I learn more about how payday loans work?
Our main guide on payday loans covers the fundamentals of how they operate, common terms, and what to consider before you apply, all from a dollars-and-cents perspective.