TITLE 28
COMMERCIAL TRANSACTIONS
CHAPTER 46
ADMINISTRATION
PART 4.
PAYDAY LOANS
28-46-412. PAYDAY LOAN PROCEDURES. (1) Each payday loan must be
documented in a written agreement signed by the borrower. The loan agreement
must include the name of the licensee, the loan date, the principal amount of
the loan, and a statement of the total amount of fees charged as a condition
of making the loan, expressed both as a dollar amount and as an annual
percentage rate (APR).
(2) The maximum principal amount of any payday loan is one thousand
dollars ($1000).
(3) A licensee may charge a fee for each payday loan. Such fee shall be
deemed fully earned as of the date of the transaction and shall not be deemed
interest for any purpose of law. No other fee or charges may be charged or
collected for the payday loan except as specifically set forth in this act.
(4) Each licensee shall conspicuously post in each licensed location a
notice of the fees, expressed as a dollar amount per one hundred dollars
($100), charged for payday loans.
(5) Before disbursing funds pursuant to a payday loan, a licensee shall
provide written notice to the borrower indicating the following:
(a) A payday loan is intended to address short-term, not long-term,
financial needs.
(b) The borrower will be required to pay additional fees if the payday
loan is renewed rather than paid in full when due.
(c) The borrower has the right to rescind the payday loan, at no cost, no
later than the end of the next business day following the day on which the
payday loan is made.
(6) (a) A payday loan may be made pursuant to a transaction whereby the
licensee:
(i) Accepts a check from a borrower who is the maker of the check;
and
(ii) Agrees not to negotiate, deposit or present the check for an
agreed upon period of time and pays to the maker the amount of the
check, less the fees permitted by this act.
(b) In such a transaction, the licensee may accept only one (1) postdated
check for each loan as security for the loan. Before the licensee may
negotiate or present a check for payment, the check shall be endorsed with
the actual name under which the licensee is doing business. The borrower
shall have the right to redeem the check from the licensee at any time
prior to the presentment or deposit of the check by making payment to the
licensee of the full amount of the check in cash or immediately available
funds.
(7) The amount advanced to the borrower by the licensee in a payday loan
may be paid to the borrower in the form of cash, the licensee's business
check, a money order, an electronic funds transfer to the borrower's account,
or other reasonable electronic payment mechanism, provided however, that no
additional fee may be charged to the borrower by a licensee to access the
proceeds of the payday loan.
(8) A payday loan may be repaid by the borrower in cash, by negotiation
of the borrower's check in a transaction pursuant to subsection (6) of this
section or, with the agreement of the licensee, a debit card, a cashier's
check, an electronic funds transfer from the borrower's bank account, or any
other reasonable electronic payment mechanism to which the parties may agree.

TITLE 28
COMMERCIAL TRANSACTIONS
CHAPTER 46
ADMINISTRATION
PART 4.
PAYDAY LOANS
28-46-413. PAYDAY LOAN BUSINESS PRACTICES. (1) 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
one thousand dollars ($1,000), plus allowable fees.
(2) 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.
(3) If the borrower's check is returned unpaid to the licensee from a
payor financial institution, the licensee shall have the right to collect
charges authorized by section 28-22-105, Idaho 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.
(4) A licensee shall not threaten a borrower with criminal action as a
result of any payment deficit.
(5) No licensee shall engage in unfair or deceptive acts, practices or
advertising in the conduct of a payday loan business.
(6) 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 pursuant to section 28-46-412(6), Idaho
Code.
(7) Other than a borrower's check in a transaction pursuant to section
28-46-412(6), Idaho Code, a licensee shall not accept any property, title to
property, or other evidence of ownership as collateral for a payday loan.
(8) A licensee may conduct other business at a location where it engages
in payday lending unless it carries on such other business for the purpose of
evading or violating the provisions of this act.
(9) A borrower may rescind the payday loan at no cost at any time prior
to the close of business on the next business day following the day on which
the payday loan was made by paying the principal amount of the loan to the
licensee in cash or other immediately available funds.
TITLE 28
COMMERCIAL TRANSACTIONS
CHAPTER 46
ADMINISTRATION
PART 4.
PAYDAY LOANS
28-46-401. DEFINITIONS. (1) As used in this act, unless the context
otherwise requires, "payday loan" means a transaction pursuant to a written
agreement between a creditor and the maker of a check whereby the creditor:
(a) Accepts a check from the maker;
(b) Agrees to hold the check for a period of time prior to negotiation,
deposit or presentment; and
(c) Pays to the maker of the check the amount of the check, less the fee
permitted by this chapter.
(2) Payday loans are regulated consumer credit transactions, and all
provisions of the Idaho credit code relating to regulated loans apply to
payday loans and to persons engaged in the business of payday loans except for
part 3, chapter 46, title 28, Idaho Code.
(3) As used in this section, "check" refers to a check or the electronic
equivalent of a check.

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