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Montana Title Loan Licensing

A title loan license is needed to engage in business as defined in the Montana Title Loan Act (Section 31-1-801, MCA). The Montana Title Loan Act was passed by the Montana State Legislature through House Bill 539 during the 2001 Regular Session. House Bill 539 provided for the licensure, examination and regulation of title loan businesses operating in Montana.

Important Considerations for Title Loan Licensees

  1. The original copy of the title loan license is to be displayed at the licensed location in Montana.
  2. Each location conducting title loan business must be licensed.
  3. If a licensee changes location the Division of Banking and Financial Institutions must be promptly notified in writing. The original license must be surrendered and a new license with the proper address will be issued.
  4. Licenses expire at the end of the calendar year in which they are issued. Licensees will receive a renewal packet in October or early November, which is to be returned to the Division of Banking and Financial Institutions by December 1.
  5. Licenses are non-transferable and non-assignable. If more than twenty-five percent (25%) of the ownership interest in a licensee is transferred to a new owner, the licensee must apply for a new license.
  6. Statutory and operational benefits conferred by a license apply only to business activity after the date of licensure. Business conducted prior to the date of licensure is not ratified or validated by obtaining a license.
  7. Montana law requires each licensee to maintain books, accounts and records that will allow the Division of Banking and Financial Institutions to determine if the licensee is complying with the provisions of the Title Loan Act.
  8. Each licensee is also required to file an annual report using a form provided by the Division of Banking and Financial Institutions. Report forms are mailed to each licensee near the beginning of each calendar year.
  9. New Licensees: Please notify us as soon as possible when you commence making title loans, as it is the practice of the Division of Banking and Financial Institutions to conduct an initial examination of a new licensee within the first few weeks of operation.

Administrative Rule Notices

Administrative Rules

Recent Legislation (2007 Regular Session)

Montana Borrowers Afforded New Protections Under Montana Title Loan Act
- Pawn Broker Exemption Repealed -

(HELENA, MONTANA) -- The Montana Division of Banking and Financial Institutions has announced that amendments to the Montana Title Loan Act (Act) effective on October 1, 2007 will afford greater protection to consumers who obtain title loans. The amendments to the Act, which were part of Senate Bill 74 (SB 74), were signed into law by Governor Brian Schweitzer on May 16, 2007.

The new law strengthens the Division's enforcement authority over title lenders. This includes the issuance of orders requiring restitution to borrowers by title lenders who violate the Act. The law also provides the Division authority to issue subpoenas to compel production of records and witnesses, including judicial injunctive actions. In addition, SB 74 also prohibits a title lender from charging any fee to a borrower that is not specifically authorized under the Act.

"The purpose of these amendments is to protect consumers who enter into short-term high rate loans from abuses that occur in the credit marketplace," said Annie M. Goodwin, Commissioner of the Montana Division of Banking and Financial Institutions. More Info.

Forms & Instructions


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Questions?

Division of Banking and Financial Institutions
301 South Park, Suite 316, PO Box 200546, Helena, MT 59620
Phone: (406) 841-2920 Fax: (406) 841-2930