Montana Payday Laws are similar to the laws of other state. In Montana, a group of payday loan lenders, who were concerned about protecting their reputations and the rights of borrowers, encouraged passage of the Montana Deferred Deposit Loan Act that was effective October 1, 1999.

In Montana lender provides loans from $50 to $300 for up to 31 days.The maximum payday loan in Montana cannot exceed $300 plus fees. The minimum payday loan is $50 plus fees. A payday loan cannot exceed 25% of the monthly net income of the borrower.

This translates to an effective APR of 650% on Montana Payday Loans and Customers are not allowed to borrow more than 25% of their take home income in the state of Montana. A borrower cannot have more than two loans outstanding at any one time with a single payday lender. The total of the two loans cannot exceed the $300 limit. In Montana, payday lenders are prohibited from renewing, repaying, refinancing, or consolidating a payday loan with the proceeds of another payday loan to the same borrower. A lender can take civil action to have the loan collected.