Payday Loans and Cash Advance in Idaho

Legal, $1,000 cap, no fee limit. Below: the law, the limits, what $300 costs here, who regulates it, and how to request a cash advance online in Idaho.

Is a Cash Advance Legal in Idaho?

Payday loans are legal in Idaho under the Idaho Payday Loan Act, Title 28, Chapter 46, Part 4 of the Idaho Code, and lenders must be licensed by the Idaho Department of Finance. Idaho does not cap the fee, which makes it one of the more expensive states to borrow in; what the law regulates is size and structure. The most you can owe a single lender and its affiliates is $1,000 in principal, a loan cannot exceed 25 percent of your gross monthly income, and the lender must check your income at least once a year. A loan may be renewed no more than three consecutive times, after which it must be paid in full. Reforms that took effect in 2014 added the income limit, the renewal cap, a once-a-year extended payment plan of at least 60 days in four equal payments, and the right to cancel a loan by the end of the next business day. The Department of Finance's fast facts report on 2014 lender data put the weighted average charge at $19.04 per $100 for 14 days, which is about 496 percent APR. For a borrower the message is simple: the law limits how deep you can get, not how much you pay.

The governing law is Idaho Payday Loan Act, Idaho Code Title 28, Chapter 46, Part 4 (Idaho Code 28-46-401 to 28-46-415; key rules in 28-46-412, 28-46-413 and 28-46-414).

Loan Limits and Terms in Idaho

Because there is no fee cap, the price of an Idaho payday loan is whatever the lender posts, and the Act requires that posting: each licensed location must display its fees as a dollar amount per $100. The income rules do the real work. The 25 percent of gross monthly income test is applied when the loan is made, and lenders must collect income information at least every twelve months. The $1,000 ceiling counts all loans from one lender and companies under common control, not loans from different lenders, and Idaho has no database to connect them. Three consecutive renewals is the hard stop; after the third the balance is due, and the lender cannot fold it into a new loan. If you cannot pay at that point, the extended payment plan in section 28-46-414 is your right once in any twelve months.

What a $300 Loan Costs in Idaho

Idaho sets no fee cap, so this example uses the Idaho Department of Finance's reported weighted average charge of $19.04 per $100 for a 14-day loan, from its fast facts report on 2014 payday lender annual reports. On $300 that is 3 x $19.04 = $57.12, repaid as $357.12. APR: $57.12 / $300 = 0.1904; 0.1904 x 365 / 14 = 4.964, or about 496 percent. A lender posting $25 per $100 would charge $75 on the same loan, about 652 percent APR; check the posted rate per $100 before you sign.

Run your own numbers with the cash advance calculator.

Consumer Protections and Who to Call in Idaho

• Payday lenders must be licensed by the Idaho Department of Finance under the Idaho Payday Loan Act, and the Department's Consumer Finance Bureau examines licensees and takes complaints online or by mail.
• You may cancel a payday loan at no cost by returning the principal before the close of business on the next business day after the loan is made (Idaho Code 28-46-413).
• The written agreement must show the total fees as a dollar amount and as an APR, and no fee or charge may be collected beyond those the Act specifically allows (Idaho Code 28-46-412).
• A lender may not make you a loan above 25 percent of your gross monthly income, may not have more than $1,000 in principal outstanding to you, and may not renew a loan more than three consecutive times (Idaho Code 28-46-413).
• Once in any twelve-month period you may request an extended payment plan of at least four equal payments over at least 60 days, at no extra interest or fees, if you ask no later than the due date (Idaho Code 28-46-414).
• A lender may not threaten you with criminal prosecution, may not take property or a vehicle title as collateral, and may not run your check through electronic representment more than twice (Idaho Code 28-46-412 and 28-46-413).

Complaints and licence checks go to the Idaho Department of Finance, Consumer Finance Bureau: 208-332-8000, www.finance.idaho.gov, or file a complaint at the regulator's complaint page. The federal CFPB also takes complaints about any lender.

Online vs Storefront Lenders in Idaho

The Idaho Payday Loan Act applies to any lender making payday loans to Idaho residents, so an online lender needs the same Department of Finance license as a storefront and is bound by the same $1,000 ceiling, income test, three-renewal limit and extended payment plan rule. The Department's complaint guidance tells consumers to check its licensee lookup first, because complaints about federally chartered institutions and unlicensed out-of-state companies fall outside its jurisdiction. Internet lenders affiliated with tribal governments and offshore operators do advertise to Idaho borrowers, usually at fees above what Idaho storefronts post and with automatic renewals that do not stop at three. Idaho's lack of a fee cap means the difference between a licensed and an unlicensed lender is less about price and more about whether the structural protections, especially the renewal stop and the payment plan, will be honored. Verify the license, read the posted fee per $100, and keep the agreement. Complaints go through the Department's online form or by mail; call 208-332-8000 with questions.

Alternatives If a Payday Loan Is Not the Right Fit

Federal credit unions in Idaho may offer payday alternative loans under NCUA rules: $200 to $1,000 over one to six months, or up to $2,000 over up to twelve months, capped at 28 percent APR with an application fee of no more than $20 and no rollovers. That is a fraction of the roughly 496 percent APR implied by the average payday fee the Department of Finance has reported. Idaho also licenses regulated consumer lenders under the Idaho Credit Code to make installment loans that repay over months rather than weeks; the Department of Finance supervises them, but compare the APR on the disclosure, because a longer term at a high rate can cost more in total. If you already have a payday loan you cannot repay, the extended payment plan in Idaho Code 28-46-414 gives you at least 60 days in four payments at no added cost, once a year. Beyond loans, ask your employer about an advance on earned wages, ask the utility or landlord for a payment arrangement, and call 2-1-1 Idaho for emergency assistance.

Compare the installment loan and payday alternative loan options before you decide.

Frequently Asked Questions

Nearby States

• WashingtonThe fee cap, a worked example and the regulator to call in Washington.
• OregonThe fee cap, a worked example and the regulator to call in Oregon.
• NevadaThe fee cap, a worked example and the regulator to call in Nevada.
• UtahThe fee cap, a worked example and the regulator to call in Utah.
• WyomingThe fee cap, a worked example and the regulator to call in Wyoming.
• MontanaThe fee cap, a worked example and the regulator to call in Montana.