Minnesota Payday Loan Laws and Regulations

Minnesota Payday Loan Laws and Regulations

Are Payday Loans Legal in Minnesota?

Short-term Payday Loans are Legal in the state of Minnesota and are mostly regulated through Minn. Stat. 47.60 et seq..

Minnesota Payday Loans.pdf

The Payday Lending legislation covers all the parts of the process concerning:

  • Payday Loan amounts
  • Payday Loan repayment terms
  • Payday Loan online direct lenders
  • Payday Loan stores near you
  • Payday Loan interest rates and other fees
  • Payday Loan collecting practices
  • Payday Loan default penalties
  • The number of outstanding Payday Loans as well as a cooling-off period in-between etc.


The main Payday Loan requirements in Minnesota are:

  • US residence
  • Minimum regular income of $1,000 per month
  • Valid checking or savings account with direct deposit
  • Phone number and e-mail address

For more details read further to find out how many Payday Loans you can borrow, whether rollovers or extensions are allowed, etc.

Minnesota Payday Loan Terms and Amounts

Minnesota residents who are eligible for a Payday Loan can get $350 cash advance per contract. The repayment term is capped at minimum and maximum 30 day(s).

However, there are no limits on the purpose of loan usage. Any urgent expenses, unforeseen bills, car repair, home repair, etc. may seem a sound reason to apply for a Payday Loan in Minnesota.

If $350 is not enough, there are always other options to receive the necessary funds in Minnesota: unsecured Installment Loans, bad credit Personal Loans, Title Loans, Check Cashing, Pawn Shops, etc.

Minnesota Payday Loans online laws 

Payday loans from both storefront and online lenders are restricted in the state of Minnesota according to Minn. Stat. 47.60 et seq.. Any lender who violates these laws can be subject to civil penalties.

Tight finances can lead people to look for instant payday loans on the Internet. People should be on guard against Internet payday lenders that evade state interest rate and consumer protection laws by operating online without proper state licensure. Numerous payday loan websites operate on the Internet. A customer generally types in his or her personal information, including Social Security and bank account numbers, and the loan is deposited into their bank account within hours. If the loan is not repaid on time (generally within two weeks), hefty finance charges are automatically debited from the consumer’s bank account every two weeks. The borrower can soon incur interest that exceeds the amount of the loan.
Some Internet payday lenders try to evade state interest rate and consumer protection laws by getting licenses in states without meaningful restrictions, by operating without state licenses at all, or by setting up operations outside of the country or under American Indian tribal authority and claiming that loans are made subject to the laws of the home country or tribe.

Minnesota law, however, makes clear that online payday lenders that lend money to Minnesota borrowers are subject to the requirements of Minnesota law, even if the lender is physically located in another state.

People should always check—before they sign up—to find out if an Internet payday lender is registered with the Minnesota Department of Commerce to make small consumer loans in Minnesota. Some consumers encounter legal problems when they dispute the amount owed under an Internet loan contract. Also, consumers who borrow online often have difficulty communicating with Internet payday lenders, who can be hard to locate to resolve disputes. Be wary about giving out information online to unknown Internet companies. This can expose you to potential privacy and identity theft risks, and a disreputable Internet company can use your bank account information to drain your account.

Minnesota Payday Loans interest rates, fees and other finance charges 

The main part of payday loan payment is mostly made up of the interest rate, or APR. The maximum APR that may be charged for short-term cash advance in Minnesota is capped by 390.00%. It means that if you borrow $100 Payday Loan for 14 days the finance charges will be  $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).

Besides, the total cost of a Payday Loan includes some additional fees. Minnesota lending rules allow to charge One NSF fee.

The law obligates Minnesota Payday Loan lenders to provide you with a written disclosure of all the rates and fees in the understandable language. You should read them carefully and if you agree acknowledge the notification by signing the contract.

Minnesota Payday Loans direct lenders regulations 

According to Minnesota payday loan laws all direct lenders are obliged to register their companies which will allow issuing payday loans contract. It concerns both Online Payday Loans and Payday Loans Near Me. And in Minnesota both online and in-store companies are strictly regulated by interest rate usury caps.

However, a few lenders have found a way to evade these caps. If a lender has sufficient net worth to qualify as an “Industrial Loan and Thrift,” it enjoys the authority to use a different set of statutes under which it may offer loans.18 Those laws, contained in Chapter 53 of the Minnesota Statutes, provide the authority to charge significantly higher rates for the same payday loan that lenders that do not qualify as Industrial Loan and Thrifts are prohibited from charging under the Payday Lending Law.n- According to Payday Lending in Minnesota Report, Summer 2013.

If you think that you’ve become a victim of a predatory lender in Minnesota, contact Minnesota Department of Commerce, situated by address: Division of Financial Examinations, 85 7th Place East, Suite 500 St. Paul MN 55101, (651) 296-2135, https://mn.gov/commerce/.

Minnesota Payday Loans consumer information

Besides amounts, rates and fees, consumers must be also well aware of other details of Payday Loans in Minnesota. They include the availability and number of rollovers, extensions and repayment plan, a cooling-off period, any default penalties or additional fees, etc. Check out the table below to find the most essential information:

Rollovers or extensions None
Cooling-off period Not stated
NSF fee One NSF fee
Criminal actions Prohibited

Look for more detailed information on the official Minnesota state regulator website – Minnesota Department of Commerce, situated by address: Division of Financial Examinations, 85 7th Place East, Suite 500 St. Paul MN 55101, (651) 296-2135, https://mn.gov/commerce/.

Legitimate Payday Loans Online with NO credit check in Minnesota 

Looking for a legal Payday Loan with No credit check in Minnesota? You must understand the meaning of this phrase correctly at first. No credit check implies that a lender will not inquire about your credit history information from or send your borrowing data to any of the three major credit bureaus Equifax, Experian, and TransUnion.

If you don’t want to damage your credit history, Minnesota law allows to apply for a Payday Loan with No credit check. But you should understand that a lender needs to check your creditworthiness at least in some way. He can perform a soft credit check when a lender pre-approves you for a loan and this inquiry will not appear on your credit report. Or there’re other ways to prove you can afford the cash advance. Payday Loan lenders use the tracking system to verify your debts, check your income, etc. And generally, they charge higher interest to lessen the risks.

Minnesota Payday loans online no credit check is one of the easiest options of getting quick cash to cope with emergency financial requirements, especially for the people with poor credit.

Does Minnesota law allow Payday Loans for bad credit borrowers?

The average credit score in Minnesota is 656, placing it in the good range. But it doesn’t mean that those who have a worse credit can’t apply for a Payday Loan in the state. 

  • First of all, there’re a lot of legit direct lenders in Minnesota providing Payday cash advance to borrowers with both good and bad credit score.
  • Secondly, you can always find a cosigner to increase your chances of being approved for a bad credit Payday Loan.
  • Find out how to improve your credit score and do your best to do it fast. 
  • Or consider taking out a bad credit Installment Loan, or bad credit Personal Loan.

Legit Payday Loans in Minnesota collection practices

If you can’t repay the loan amount plus interest on a due date it means you default the loan. When Minnesota direct lender isn’t able to cash your check after the repayment term is over he may charge you an NSF fee. NSF fee means there are non-sufficient funds on your account. The amount charged is determined by the lender and stated in the agreement and may also be limited by the state’s Payday Loan law. In Minnesota NSF fee is One NSF fee.

If you think that your payday lender violates the Minnesota Payday Loans law, you may file a written complaint with Minnesota Department of Commerce, situated by address: Division of Financial Examinations, 85 7th Place East, Suite 500 St. Paul MN 55101, (651) 296-2135. The supervisor from that office interviews witnesses, reviews the payday lender’s business records and documentation, and determine whether to pursue civil or criminal charges.

Minnesota Payday Loans news  – latest changes

In 2018 Minnesotans took out some 330,000 Payday loans. They borrowed about $133 million, promising to pay the money back with upcoming paychecks.

In order to help people avoid payday lenders it has been planned to open credit unions providing such emergency funding.

They focus on serving low-income people and economically distressed communities underserved by lenders. At least five Minnesota credit unions already make small-dollar or auto loans to customers who usually would not qualify for a loan.

Minnesota Payday Loans historical background

1939 The Small Loan Act put the beginning to Payday lending regulations.
1995 Payday Loans under $350 became legal.
2006 Payday Loans to the military were capped at 36% interest rate.
1999 – 2012 Payday lending business was developing fast and successfully.
2014 The number of loans that a borrower can take was discussed but not limited.
June 2, 2016 A Payday Loan Rule was proposed.
2019 No more new regulations have been or are going to be passed.

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