Payday Loan Laws in Minnesota
If you live in Minnesota, you should research payday loan laws in the state so you can learn if these signature loans are legal or prohibited. Small loan laws, caps, and maximum limits are designed to protect consumers from usury and predatory lending. If you choose a reputable payday loan lender, you can get the funds you need fast without worrying about unfair hikes in interest or other financing fees. Read through the Minnesota payday loan laws and understand how to apply for a loan before you fill out your application.
It is important to note that payday loans are not available in every state and laws and regulations vary by state. Information for Minnesota Payday Loans is provided for your convenience.
Consumers are protected under the 47.60 et seq. statute and this statute is available online if you would like to read it word for word. If you would like a brief explanation of this statute in terms you can understand, read below.
Payday loan laws in Minnesota set limits on how much a borrower can borrow in any given 30 day period. Borrowers can apply for up to $350 from one lender and the repayment date much be set within 30 days from the day of approval on the loan. While these loan limits are strict per lender, there are no laws on the maximum number of outstanding loans a single borrower can have at the same time. This means that if the lender approves the application, one person can have more than one active loan from separate lenders.
The state also regulates the maximum finance rates and fees that can be charged to the borrower. The maximum finance rates depend on the amount that is borrowed from the lender. The maximums are as follows:
$0 to $50: $5.50
$51 to $100: $5 plus 10%
$101 to $250: $5 plus 7%
$251 to $350: $5 plus 6%
After default, the maximum finance rate per month is 2.75 regardless of the amount borrowed.
Some states allow a borrower to apply for a new loan from the same lender to repay an outstanding loan with the proceeds of the new loan. This is not permitted in the state of Minnesota and lenders follow this law. If you cannot afford to repay your loan, you will have to pay the finance charge and extend your loan.
All lenders must be licensed in the state of Minnesota to offer payday loans to residents in the state. When you are comparing payday lenders, you should review their standing with the Minnesota Department of Commerce to see if there are an exorbitant number of complaints filed against the institution. If you ever have a problem with a lender, you can file your own complaint with this department to resolve the dispute and protect other consumers. Research of several payday advance lenders before you submit your application and choose a lender that offers fair
interest and fair terms on loans.
Take a look at the benefits of applying for Online Payday Loans if available in your state.