Payday Loan in Idaho
Legal Status: Legal
Citation:
Idaho Code Ann. § 28-46-401 et seq.
Loan Terms:
Maximum Loan Amount: $1000
Loan Term: Not Specified
Maximum Finance Rate and Fees: Not Specified
Finance Charge for 14-day $100 loan:
APR for 14-day $100 loan: No Limit
Debt Limits:
Maximum Number of Outstanding Loans at One Time: Not Specified ($1000 aggregate loans outstanding to all licensees)
Rollovers Permitted: Three (renewals)
Cooling-off Period:
Repayment Plan:
Collection Limits:
Collection Fees: $20 NSF fee + 12% interest per annum on unpaid amount (if disclosed )
Criminal Action: Prohibited
Where to Complain, Get Information:
Regulator: Idaho Department of Finance
Address: Consumer Credit Section, 700 West State Street, 2nd Floor Boise ID 83702
Phone: (208) 332-8000
Fax: (208) 332-8099
Applicability: This statute governs lenders making payday loans.
Licensing requirements: Payday lenders must be licensed. Separate licenses are required for each location. Applicants must have liquid assets of at least $30,000. Applicants seeking to engage in the business of payday loans at more than one (1) location in the state shall have liquid assets of at least an additional $5,000 for each additional location in the state up to a maximum of seventy-five thousand dollars $75,000 for all locations in the state. Otherwise, Idaho credit code applies. Idaho Code § 28-42-201 (allows interest at any contract rate).
Loan terms: A licensee may renew a payday loan no more than three (3) consecutive times, after which the payday loan shall be repaid in full by the borrower. A borrower may enter into a new loan transaction with the licensee at any time after a prior loan to the borrower is completed. A loan secured by a borrower’s check is completed when the check is presented or deposited by the licensee or redeemed by the borrower.
Prohibited acts: No licensee or person related to a licensee by common control may have outstanding at any time to a single borrower a loan or loans with an aggregate principal balance exceeding $1,000, plus allowable fees. No payday loan shall be repaid by the proceeds of another payday loan made by the same licensee or a person related to the licensee by common control. A licensee shall not threaten a borrower with criminal action as a result of any payment deficit. No licensee shall engage in unfair or deceptive acts, practices or advertising in the conduct of a payday loan business. Other than a check, a licensee shall not accept any property, title to property, or other evidence of ownership as collateral for a payday loan.
Permitted charges: If the borrower’s check is returned unpaid to the licensee from a payor financial institution, the licensee has the right to collect charges authorized by this code provided such charges are disclosed in the loan agreement. A licensee may not charge treble damages. If the borrower’s obligation is assigned to any third party for collection, the provisions of this section shall apply to such third party collector.
Enforcement and Penalties: License revocation or suspension. Administrator may bring civil actions. Administrator may also seek injunctions against violations of the act and against unconscionable agreements and fraudulent or unconscionable conduct including debt collection bring civil enforcement actions. Administrator can bring action for failure to file notification or to pay fees for 3 times the amount of fees the defendant has failed to pay or $1000 (whichever is greater) plus administrator’s costs and attorney’s fees.
Private right of action: Debtors can recover actual damages and civil penalties of no more than $5,000 for repeated and intentional violations of this act. Debtor’s remedies are not affected by actions brought by the administrator.
