Idaho Loan Laws: Payday, Title and Installment Rules

Payday loans are legal in Idaho, and the state puts no cap on the interest or fees a lender can charge. What the law does limit is the loan itself. Under the Payday Loan Act, a single loan can’t be more than 25% of your gross monthly income, and it can’t exceed $1,000. You also get three renewals at most and one interest-free payment plan every 12 months.

Idaho payday loan laws at a glance (2026)

Idaho regulates payday loans through the Payday Loan Act, Part 4 of Idaho Code Title 28, Chapter 46. That chapter belongs to the Idaho Credit Code. The Act limits loan size, renewals, collateral and collection tactics, but it does not cap price. No 2026 bill changed any of these rules.

Rule	What it means for you	Idaho Code section
License required	Every location needs its own payday lender license	§28-46-403
Loan size	Up to 25% of your gross monthly income when the loan is made	§28-46-413
Fees and interest	No statutory cap	Not capped in Part 4
Renewals	Three at most. After that the loan must be paid in full before you get a new one	§28-46-414
Refinancing	A loan can’t be paid off with another payday loan from the same lender or a related company	§28-46-413
Extended payment plan	Once per 12 months: at least 4 equal payments over at least 60 days, with no added interest or fees	§28-46-414, §28-46-415
Collateral	Your check is the only collateral allowed	Title 28, Chapter 46, Part 4
Re-presenting checks	No more than two electronic re-presentments	§28-46-414(8)

How much can you borrow and what will it cost?

Idaho limits how much you can borrow but not what you pay. Your maximum is the smaller of $1,000 or 25% of your gross monthly income. The fee is whatever you and the lender agree to. That is why Idaho’s average payday APRs rank among the highest reported anywhere in the US.

The 25% income rule, explained

Idaho Code §28-46-413(2) says a payday lender “shall not make a payday loan that exceeds twenty-five percent (25%) of the gross monthly income of the borrower when the loan is made.” Gross means before taxes and deductions. The Idaho Department of Finance’s 2014 announcement of the new rules said the loan also cannot exceed a total of $1,000.

Gross monthly income	Maximum payday loan from one lender
$1,600	$400
$2,400	$600
$3,200	$800
$4,000	$1,000
$6,000	$1,000 (the dollar cap applies)

There is a catch for borrowers. Under the same section, a lender isn’t breaking the law if you show proof of income or certify in writing that the loan fits within the cap. If you overstate your income on that form, the lender is protected and you aren’t.

Why Idaho has no interest cap

The Payday Loan Act has no limit on finance charges. The wider Idaho Credit Code generally lets the parties set the price. Idaho Code §28-42-201 says the finance charge rate “shall be that which is agreed upon between the parties to the transaction.” Lawmakers have tried to add a cap several times, and every attempt has failed. The history is covered further down.

What a typical loan costs

Because there is no cap, the only way to judge a price is to convert the fee into an APR, the annual rate the Truth in Lending Act requires lenders to disclose. Here is the math in plain words: divide the fee by the amount borrowed, divide that by the number of days in the term, then multiply by 365.

The fees in this table are examples to show the math. They are not Idaho legal limits.

Amount	Fee	Term	Total repaid	APR
$300	$45 ($15 per $100)	14 days	$345	391%
$340	$103 (about $30 per $100)	17 days	$443	About 652%
$500	$100 ($20 per $100)	14 days	$600	521%

How the first row works: $45 ÷ $300 = 15% for 14 days. Then 15% ÷ 14 × 365 = 391% a year. The second row matches the 652% average APR the Center for Responsible Lending reported in its June 2023 rate map, which drew on Idaho’s state data for a 17-day loan averaging $339.75.

Metric	Figure	Period	Source
Payday loans made	268,366	Calendar 2015	Idaho Department of Finance, Credit Code Fast Facts
Licensed payday lenders	147	Year-end 2015	Idaho Department of Finance
Average loan	$334.95	2015	Idaho Department of Finance
Average term	17 days	2015	Idaho Department of Finance
Average APR	582%	Reported 2014	The Spokesman-Review
Average APR	652%	June 2023 map	Center for Responsible Lending

The 2015 counts are the latest the Department has published in its Fast Facts series. In 2014 The Spokesman-Review called Idaho’s 582% average the highest in the nation. The Center for Responsible Lending’s 2023 map again put Idaho at the top.

Rollovers, renewals and back-to-back loans

You can renew an Idaho payday loan three times. After the third renewal you have to repay the whole balance before that lender can give you a new payday loan. The Department of Finance described this rule when the 2014 changes to §28-46-413 took effect. The same section bars paying off a payday loan with a new payday loan from the same lender or a company under common control.

Each renewal usually means paying another fee without reducing what you owe. Take a $300 loan with a $45 fee. Renew it three times and you have paid $180 in fees over about eight weeks, and you still owe the full $300.

The 25% cap has a gap that came up in the 2014 floor debate: it applies to each lender separately. Nothing in Part 4 sets up a statewide database that stops you from borrowing from two or three lenders at once. That is how many borrowers end up owing far more than a quarter of their pay. If every paycheck goes to renewals, the next section is the legal way out.

Your right to an interest-free extended payment plan

Idaho gives every payday borrower the right to an extended payment plan once in any 12-month period. The plan spreads what you owe over a series of payments. You can’t end up owing more than you did on the original loan, and the lender can’t add interest or fees beyond what §28-46-413 allows. The Department’s guidance, first issued in 2014 and reissued in October 2020, spells out these terms.

How to ask for it

1. Ask before the loan is due, and do it in writing (email, a letter, or a form at the store).
2. Use plain words: “I am requesting the extended payment plan available under Idaho Code §28-46-414. I cannot repay this loan on the due date. Please send me the written plan terms.”
3. Check that the plan has at least four equal payments over at least 60 days, and that the total equals your current balance with nothing added.
4. Keep a copy of the request, the signed plan and every receipt.
5. Make each payment on time. Because the right is once per 12 months, it is your one reset for the year.

What the lender cannot do

A lender can’t charge you to set up the plan or add new interest while you pay. The Department of Finance has also said in guidance to lenders that a plan that doesn’t give you a reasonable chance to pay off the debt is an unfair practice under §28-46-413(8). One example would be payments so large or so close together that the plan is set up to fail. If a lender refuses a valid request or offers terms like that, report it to the Department.

What lenders can and can’t do to collect

Idaho payday lenders have to collect by civil means. They can’t threaten you with jail or prosecution. They can’t take your car title or other property as security. They can run your check electronically only twice after the first attempt. And if they lack an Idaho license, they can’t collect at all.

Can you go to jail for not paying a payday loan in Idaho?

No, not for simply failing to repay. The Payday Loan Act bars lenders from threatening criminal action against a borrower over a payment. When you hand over a postdated check, both you and the lender know the money isn’t in the account yet. So a check that bounces on a payday loan is a debt to collect, not a criminal case. The lender’s options are collection and a civil lawsuit. Jail is not one of them.

Bank re-presentments and overdraft fees

Under §28-46-412(8), a payday lender can’t make more than two electronic re-presentments of your check. Each failed attempt can still trigger a returned-item or overdraft fee from your bank. So two re-presentments after the first attempt can mean three bank fees on top of the loan. Watch your account around the due date.

No collateral beyond your check

Section 28-46-413 says that, other than your check, a payday lender can’t accept property, a title to property or other proof of ownership as collateral. A storefront that wants your car title is making a title loan, which falls under a different law (covered below).

Online and unlicensed lenders

Section 28-46-402 requires a payday lender license for each business location. It also makes a payday loan made without the required license void and uncollectible. If an online company is lending to you in Idaho without that license, the loan may not be collectible at all. Some online lenders claim they are covered by tribal sovereign immunity. Those claims have been fought in court, and they make it harder to enforce your rights in practice. Check the license before you borrow, not after.

Idaho title loans

Idaho title loans are legal and governed by the Title Loan Act, Part 5 of Idaho Code Title 28, Chapter 46. The Act limits loan terms and renewals but sets no maximum interest rate. Your car is the collateral, so falling behind can cost you the vehicle, not just money.

The main rules:

• License or void: Under §28-46-503, a title loan made without a license is void, and the lender loses the right to collect principal, interest or fees. A 2006 Department letter explains that the license involved is the Regulated Lender license under the Idaho Credit Code.
• 30-day term: Section 28-46-506(1) says title loan agreements “shall not exceed thirty (30) days in length.” Renewals are allowed, and they can be automatic.
• Paying down principal: The Department’s guidance on §28-46-506 says that starting with the third renewal, you must pay at least 10% of the original principal on top of the finance charge. Finance charges are then figured on the remaining balance.
• Deferral: A lender can choose to defer the required principal payment but doesn’t have to. No more finance charges can build up on the deferred amount.
• Prohibited deals: Section 28-46-508 bars title loans to anyone under 18 or anyone who appears intoxicated. It also bars the lender from buying the vehicle it holds as security.

Amount	Monthly finance charge (example)	Term	Total repaid if paid in 30 days	APR
$1,000	$250 (25% a month)	30 days	$1,250	About 304%

The math: $250 ÷ $1,000 = 25% for 30 days. Then 25% ÷ 30 × 365 = about 304%. Idaho law doesn’t set this charge, so your contract and its Truth in Lending disclosure show the real figure.

Installment loans in Idaho

Idaho installment loans from finance companies are made under the Idaho Credit Code by lenders holding a Regulated Lender license from the Department of Finance. As with payday loans, there is no fixed rate ceiling: §28-42-201 lets the lender and borrower agree on the rate. The protections you get come from licensing, the required disclosures, and the Credit Code’s limits on extra charges. For example, an Idaho Attorney General opinion read §28-45-301 as barring default charges the Code doesn’t authorize.

Amount	APR (example)	Term	Monthly payment	Total repaid
$1,500	36%	12 months	About $151	About $1,808
$1,500	99%	12 months	About $196	About $2,355

Those two rows show why Idaho installment loans vary so much. The same $1,500 can cost about $308 or about $855 in interest over a year, depending only on the rate you agree to. Compare the APR and the total of payments on the Truth in Lending disclosure. A low monthly payment can hide a high total cost.

Debt collection and wage garnishment limits in Idaho

A payday, title or installment lender can only take money from your paycheck after it sues you and wins a court judgment. Even then, Idaho Code §11-207 and §11-712 limit garnishment to the smaller of two amounts: 25% of your weekly disposable earnings, or the amount by which those earnings exceed 30 times the federal minimum wage. This matches the federal limit.

Worked example: say you take home $600 a week after required deductions. 25% of that is $150. Thirty times the $7.25 federal minimum wage is $217.50, and $600 minus $217.50 is $382.50. The smaller figure, $150, is the most a creditor can garnish each week. If you earn $217.50 a week or less, none of it can be garnished for an ordinary consumer debt.

Collection agencies working in Idaho need a license from the Department of Finance under the Idaho Collection Agency Act (Idaho Code Title 26, Chapter 22). Third-party collectors also have to follow the federal Fair Debt Collection Practices Act.

If you can’t repay: a step-by-step plan

Should you just stop paying and let the loan default? It’s rarely the best first move. Default sets off returned-check fees, collection calls and possibly a lawsuit. Idaho gives you better tools, and you should use them in this order.

For electronic debits, the Electronic Fund Transfer Act and Regulation E (12 CFR 1005.10) let you stop preauthorized transfers by notifying your bank at least three business days before a scheduled debit. Revoking the authorization doesn’t cancel what you owe. It stops the account drain while you set up the payment plan. Stopping a paper check means a stop-payment order, which usually carries a bank fee.

What about the claim that defaulted payday debt only builds up interest at Idaho’s 12% statutory rate? Don’t count on it. What a licensed lender can add after default depends on your contract and the Payday Loan Act. Ask for an itemized balance and check each line against your agreement.

How long can a creditor come after you in Idaho?

For most written loan contracts, a creditor has five years to sue under Idaho Code §5-216. For oral agreements and open accounts, the limit is four years under §5-217. After that the debt is “time-barred”: a creditor can still ask you to pay, but it loses the ability to win a lawsuit if you raise the deadline as a defense.

The trap is §5-238. A written, signed acknowledgment of the debt or a written promise to pay can restart the clock. Read anything a collector asks you to sign on an old debt very carefully. A court judgment changes everything: it has its own, much longer life under Idaho law and can be renewed. So the five-year rule only protects you if the creditor never sued and won.

New laws in 2026: what happened to the payday rate cap

Nothing changed. House Bill 649, which would have capped payday and title loan rates, did not pass the 2026 session. BillTrack50 lists H0649 as dead as of April 2, 2026. The Payday Loan Act and Title Loan Act stand as they were.

Rep. Bruce Skaug (R-Nampa) introduced HB 649 in February 2026, BoiseDev reported. The bill would have limited interest to 30% or 10 points above the prime rate, whichever was higher, by adding a new §28-22-103 to Idaho Code. After Moneytree testified before the House Business Committee in early March, the bill was sent to the amending order for a rewrite. Moneytree said its average loan was $300 and was repaid in 21 days, and warned that borrowers would move to offshore lenders. The Idaho Freedom Foundation opposed the bill as a limit on freedom of contract. No rewritten version became law.

Year	Bill	Proposed cap	Outcome
2014	Senate Bill 1314	No rate cap. Added the 25% income limit, the renewal limit and the extended payment plan	Became law
2024	Senate Bill 1285	36% APR on payday loans	Not enacted
2026	House Bill 649	30% or prime plus 10 points, payday and title loans	Died, April 2, 2026

Federal rules that apply everywhere

Three federal laws apply in Idaho no matter what state law says. The Truth in Lending Act and Regulation Z (12 CFR 1026) require every lender to disclose the APR and the total cost in writing before you sign. The Military Lending Act caps the Military Annual Percentage Rate at 36% for active-duty service members and their dependents, so most Idaho payday and title loans at typical prices can’t legally be made to them. The Fair Debt Collection Practices Act bars third-party collectors from harassment, false threats and misleading statements. You can complain about violations to the Consumer Financial Protection Bureau.

Help that costs less

Look at cheaper options before you take a payday or title loan in Idaho. A federal credit union payday alternative loan is capped at 28% APR under NCUA rules (12 CFR 701.21). That compares with the hundreds of percent shown above.

Option	Typical cost	Key limits
Credit union PAL I	APR up to 28%, application fee up to $20	$200 to $1,000, 1 to 6 months, membership required
Credit union PAL II	APR up to 28%	Up to $2,000, 1 to 12 months
Payday extended payment plan	No added interest or fees	Once per 12 months, existing loan only
Employer pay advance	Often free	Depends on your employer
Nonprofit credit counseling	Free or low-cost	Budget review and debt management plans

How to check a lender’s license and file a complaint

The Idaho Department of Finance, through its Consumer Finance Bureau, licenses and examines payday, title and regulated lenders and collection agencies. Use its licensee search on the Department website to confirm a lender holds the right Idaho license at the location you’re using. For licenses kept in the national system, you can cross-check through NMLS Consumer Access. The Department’s licensing line is (208) 332-8000.

For scams, such as fake lenders asking for upfront fees, also report to the FTC at ReportFraud and, for online fraud, to the FBI’s IC3.

Idaho compared with other states

Idaho is one of the most lightly regulated payday states on price. Its neighbors Montana and Oregon have rate caps that sharply limit payday lending. Nevada and Utah, like Idaho, cap loan terms but not price. For a close parallel, our guide to Nevada payday loan laws covers a similar 25%-of-income model.

State	Payday loans	Rate rule
Idaho	Allowed	No cap; $1,000 or 25% of gross monthly income
Montana	Effectively blocked	36% APR cap (2010 ballot measure)
Oregon	Allowed with limits	36% interest plus a limited origination fee
Washington	Allowed with limits	Loan limited to $700 or 30% of gross monthly income
Nevada	Allowed	No rate cap; 25% of gross monthly income
Utah	Allowed	No rate cap

Which states have banned payday loans? Most states that “ban” them do it with an interest cap, usually around 36%, set low enough that the storefront model can’t operate. Montana is the nearest example to Idaho. For other approaches, see our state pages on California payday loan laws, Illinois payday loan laws and Ohio payday loan laws.

FAQ

Are payday loans legal in Idaho?

Yes. Lenders need a payday lender license from the Idaho Department of Finance for each location (§28-46-402). A loan made without that license is void and uncollectible.

What is the maximum payday loan amount in Idaho?

The smaller of $1,000 or 25% of your gross monthly income when the loan is made (§28-46-413). The limit applies to each lender separately, so borrowing from several lenders can push your total debt well past it.

Is there an interest rate cap on payday loans in Idaho?

No. Idaho sets no cap on payday fees or interest. Bills to add one, including Senate Bill 1285 in 2024, did not become law.

How many times can you roll over a payday loan in Idaho?

Three. After the third renewal you have to repay in full before that lender can make you a new payday loan. You also can’t pay off one loan with another loan from the same lender.

Can you go to jail for a bounced payday loan check in Idaho?

No. Idaho law bars payday lenders from threatening criminal action. A bounced payday check is handled through collection or a civil lawsuit. Report any threat of arrest to the Department of Finance.

What are the new laws in Idaho for 2026 on payday loans?

There are none. House Bill 649, which would have capped payday and title loan interest at 30% or prime plus 10 points, died in April 2026. The 2014 rules remain in force.

Your strongest protection as an Idaho borrower is the extended payment plan. It costs nothing, it pauses the renewal fees, and it’s yours by law once a year. Request it in writing before your next due date.

Laws and regulations referenced

• Idaho Code Section 28-46-401 (Payday Loans: Definitions), start of Title 28, Chapter 46, Part 4 (Payday Loans)
• Truth in Lending Act, 15 U.S.C. 1601
• Regulation Z, 12 CFR Part 1026
• Fair Debt Collection Practices Act, 15 U.S.C. 1692
• Electronic Fund Transfer Act, 15 U.S.C. 1693
• Regulation E (electronic transfers), 12 CFR Part 1005
• Military Lending Act, 10 U.S.C. 987

Links go to the official text on government sites.

Check, verify or complain

• Idaho Department of Finance, Consumer Credit
• NMLS Consumer Access (state lender licenses)
• CFPB complaint portal
• FTC ReportFraud
• FBI Internet Crime Complaint Center (IC3)

Sources

1. Idaho Code §28-46-413, Idaho Legislature legislature.idaho.gov · official source
2. Idaho Code §28-46-412, Idaho Legislature legislature.idaho.gov · official source
3. Idaho Code §28-46-414, Idaho Legislature legislature.idaho.gov · official source
4. Idaho Code §28-46-415, Idaho Legislature legislature.idaho.gov · official source
5. Idaho Code Title 28, Chapter 46 (PDF), Idaho Legislature legislature.idaho.gov · official source
6. Idaho Department of Finance: Payday Loan Act Changes (2014) finance.idaho.gov · official source
7. Idaho Department of Finance: Extended Payment Plans guidance (Oct 2020) finance.idaho.gov · official source
8. Idaho Department of Finance: Guidance to Payday Lenders on Extended Payment Plans (2014) finance.idaho.gov · official source
9. Idaho Credit Code Fast Facts (Jan 2017) finance.idaho.gov · official source
10. Idaho Legislature: 2026 H0649 legislature.idaho.gov · official source
11. Idaho Legislature: 2024 S1285 legislature.idaho.gov · official source
12. Idaho Code §28-46-506, Idaho Legislature legislature.idaho.gov · official source
13. Idaho Code §28-46-503, Idaho Legislature legislature.idaho.gov · official source
14. Idaho Code §28-46-508, Idaho Legislature legislature.idaho.gov · official source
15. Idaho Department of Finance: Title Lending guidance finance.idaho.gov · official source
16. Idaho Code §28-42-201, Idaho Legislature legislature.idaho.gov · official source
17. Idaho Code §11-207, Idaho Legislature legislature.idaho.gov · official source
18. Idaho Department of Finance: 2023 Consumer Finance Bureau Newsletter finance.idaho.gov · official source
19. Idaho Department of Finance: ICC Notice NMLS Required (March 2026) finance.idaho.gov · official source
20. Idaho Code §28-46-413 legislature.idaho.gov · official source
21. Idaho Code §5-216 legislature.idaho.gov · official source
22. Center for Responsible Lending payday rate map (June 2023) responsiblelending.org
23. Spokesman-Review: Idaho payday loan interest rates highest in nation spokesman.com
24. BoiseDev: Bill would cap interest rates on payday, title loans boisedev.com
25. BoiseDev: Legislators to rewrite payday lender reform after Moneytree testifies boisedev.com
26. BillTrack50: ID H0649 billtrack50.com
27. Idaho Freedom Foundation: House Bill 649 idahofreedom.org
28. Boise State Public Radio: Idaho Legislature approves bill limiting payday loans boisestatepublicradio.org
29. Idaho Statutes 28-46-413 law.counselstack.com
30. Idaho Code §28-46-402 License required law.justia.com
31. Horkley v. Horkley summary studicata.com
32. r/povertyfinance thread redlib.nohost.network
33. Idaho Legal Aid Services - Loans idaholegalaid.org

Written byElena RuizStaff writer, money basics and your rights

Elena writes about getting through a money emergency, assistance programs, budgeting on a tight income, banking basics and borrower rights. Her guides list the cheaper options first and link the agency or program that can actually help.

Fact-checked byRuth AdlerStandards Editor

Ruth is US Financer's standards editor. Every article goes through her checks before and after it is published: each rate, fee, cap, deadline and rule is matched against its primary source, every law named is linked to its official text, and anything that cannot be…

What changed

• Nov 14, 2026 First published.