Minnesota
How do I know if a lender is licensed in Minnesota or not?
Browse the list of licensed Small Lenders on the website of Minnesota Department of Commerce.
What are the obligations a licensed lender should follow in MN?
Maximum amount that may be lent in a deferred presentment transaction/cash advance is $350. Loan term shall not exceed 30 days period.
Licensed small loan lenders may charge fees; MN suggests certain slabs for fees based on the loan amount:
- $5.50 up to $50 of the loan amount
- 10% + $5 (administrative fees) for $51 - $100 of the loan amount
- 7% + minimum of $10 + $5 (administrative fees) for $101 - $250 of the loan amount
- 6% + minimum of $17.50 + $5 (administrative fees) for $251 + $350 of the loan amount
Rollovers or renewals are not allowed, a loan must not be repaid by the proceeds of another similar loan from the same lender or any other licensed lender. Loan made to a borrower may not be divided or split and no single borrower shall have more than one outstanding loan or the aggregated principal over $350 out of collection fees higher than what is permitted.
What if the check returns?
Lenders can charge $30 fees, civil penalties can be added; the code does not say anything like criminal prosecutions.
Where to complaint if I find someone violating the rules?
All queries and complaints should be forwarded to the Minnesota Department of Commerce.
