Idaho Payday Loan Laws

Idaho has one of the highest payday loan amounts and lenient rules on interest rates as well. The current payday laws and regulations are as follows:

• Maximum Payday Loan Amount – $1,000 dollars
• Minimum Payday Loan Terms – Unspecified
• Maximum Payday Loan Terms – Unspecified
• Maximum Quantity of Outstanding Payday Loans – Unspecified, cannot be above $1,000 dollars outstanding
• Maximum Amount of Payday Loan Extensions – Three
• Maximum Payday Annual Percentage Rate (APR) – None
• Maximum Payday Financing Interest Fees – Unspecified
• Maximum Payday Annual Financing Interest Rates – 15 percent of loan
• Maximum Allotted NSF Check Fees – $20 dollars only and 12 percent of damages
• Maximum Allowed Criminal Actions – None

Payday loan business owners do not have a great need to bypass the few laws, but many have anyway. Some lenders are not lending cash for their payday loans. Instead of loaning actual cash, they issue their customer a printed check. Then, the lender will turn around and offer a check cashing service for double digit percentage cashing fees. This way they get all the payday loan fees and charges, plus the additional fees for cashing the checks.

Some deceptive payday lenders will also say they can only approve small payday loans due to the client’s credit score. However, this is usually false, because most payday lenders never actually check credit scores. This is because these loans have less to do with credit standing than getting the most money out of their customers.

Idaho residents need to be aware of payday lenders offering prepaid credit cards as well. This semi-new practice is where they lender issues a debit card for the loan amount, but has it set up to allow for overages. These overages are usually in the hundreds of dollars and carry high fines. This is another way for the lenders to collect money outside the high rates and fees from the actual payday loan.

With the lose payday laws in Idaho, many lenders do not find a need to operate overseas, although there certainly are some that do. These are the ones you can only fine online. They should be avoided, as they can legally charge as much APR and hidden fees as they choose. Also, they do not have to disclose hidden fees or be clear in their payday loan agreements. So, if a brick and mortar location cannot be found somewhere in Idaho, it is best for the borrower to avoid them.

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