Minnesota Payday Loans

Minn. Stat. 47.60 et seq.
Status: Legal

Payday loans are legal in the state of Minnesota, pursuant to Minn. Stat. 47.60 et seq.  There are approximately 133 companies offering payday loan services currently operating in the state.

Payday Loan Lending Laws in Minnesota

$350 is the maximum amount a potential borrower can receive from a lender, which needs to be paid back within 30 days. State laws allow a maximum APR of up to 390% per annum on a $100 of loan issued for a repayment period of fourteen days. The finance rates and fees vary depending on the loan amount:  $5.50 on the first $50, 10% plus additional $5 on loan amount between $51 and $100, 7% (minimum $10) plus an additional $5 on loan amount between $101 and $250, 6% plus an additional $5 on loan amount between $251 and $350. Rollovers are not permitted and a $30 nonsufficient fund fee can be charged should the repayment check bounce.  Additionally, lenders can also charge interest up to 2.75% per month on a delinquent loan.

State laws do not specify how many payday loans a borrower can have out at one time, but they do prohibit a borrower from taking out another loan from the same lender to pay off a previous outstanding loan. Borrowers have the option to borrow from another lender and then pay off the previous outstanding loan, but such practices are discouraged due to the possibility of falling into a debt cycle.

A unique feature of Minnesota payday loan regulations rests with the lack of specifications regarding criminal charge options for lenders. In most states that allow payday lending, lenders are prohibited from charging delinquent borrowers with lawsuits to make them pay the loans back. This means a lender would not be allowed to threaten a delinquent borrower with criminal charges such as jail time or wage garnishment. As Minnesota regulations lack such rules, it is possible a lender could threaten a borrower with legal action should the loan fall delinquent. However, the Fair Debt Collection Practices Act does apply in the state of Minnesota, so while a lender has the option of seeking legal action, they cannot intimidate or verbally and physically threaten a borrower.

The possibility of criminal charges should not discourage the use of cash advance loans. It should, however, underline the importance of understanding how the loans work before using them. Short term loans are like any other financial loan in that they must be paid back, and the time frame for doing so can make this challenging.

Lending Rules*

Lenders in the state of Minnesota are legally required to comply by the following limitations according to Minn. Stat. 47.60 et seq.:

Maximum Loan Amount:
$350
Maximum Length of Loan:
30 days
Maximum Finance Rate & Fees:
$5.50: $0-$50; 10%+$5: $51-$100; 7% (min. $10) + $5: $101-$250; 6% (min. $17.50) + $5: $251-$350 (After default: 2.75% per month)
Finance Charge for 14-day $100 Loan:
$15
APR for 14-day $100 Loan:
390%
Max # Outstanding Loans at One Time:
Not Specified
Rollovers Permitted:
None (cannot repay with proceeds of another loan by same lender)
Collection Fees:
$30 NSF fee
*The information displayed may not be current. For the most recent information, please visit http://www.paydayloaninfo.org/state-information/31.

Regulatory Information

If you have a complaint against a Minnesota Cash Advance location you can contact your state regulator below:

Regulator:
Minnesota Department of Commerce
Address:
Division of Financial Examinations, 85 7th Place East, Suite 500 St. Paul MN 55101
Phone:
1-800-657-3602
Website:


Minnesota Lenders

Below you can find Minnesota payday loan lenders in the following cities:

Minnesota Statistics**

The following information is key demographic data for the state of Minnesota from the Census bureau.

Total Population:
5,519,952
Median Household Income:
$61,492
Poverty Rate:
10.2%
Median Gross Rent:
$848
High School Graduate or Higher:
92.4%
Bachelor's Degree or Higher:
33.7%
**The information displayed may not be current. For the most recent information, please visit http://www.census.gov/quickfacts.

Borrow Responsibly

By design, a payday loan exists as a short-term solution to an unexpected financial situation. They are not designed for long-term financial planning and should never be used irresponsibly. A potential borrower should understand everything they can about the loan terms and the lending company before engaging its services, and they should also consider other possible solutions to address the financial hardship before using cash advance loans. To avoid high interest payments, paying off the loan in full within the set time frame is highly recommended.

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