(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).

Terms Used In Idaho Code 28-46-412

  • Annual percentage rate: The cost of credit at a yearly rate. It is calculated in a standard way, taking the average compound interest rate over the term of the loan so borrowers can compare loans. Lenders are required by law to disclose a card account's APR. Source: FDIC
  • check: refers to a check or the electronic equivalent of a check, including an authorization given by a borrower to a creditor to withdraw an agreed upon amount from any account held by the borrower. See Idaho Code 28-46-401
  • Electronic funds transfer: The transfer of money between accounts by consumer electronic systems-such as automated teller machines (ATMs) and electronic payment of bills-rather than by check or cash. (Wire transfers, checks, drafts, and paper instruments do not fall into this category.) Source: OCC
  • licensee: means a person licensed under this part and all persons required to be licensed under this part. See Idaho Code 28-46-401
  • payday loan: means a transaction pursuant to a written agreement between a creditor and the maker of a check whereby the creditor:
Idaho Code 28-46-401
(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) (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.
(6) 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.
(7) A payday loan may be repaid by the borrower in cash, by negotiation of the borrower’s check in a transaction pursuant to subsection (5) 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.
(8) A payday lender shall not make more than two (2) electronic representments of a borrower’s check to a depository institution.