Payday Loan Laws

Minnesota payday loan laws. Minnesota payday loan legislation.

Minnesota has specific payday advance laws. A scale of fees (e.g., on a payday loan between $50-$100, 10% of the loan + $5 administration fee).

The maximum term of a payday loan is 30 days. Maximum amount of a cash advance is $350. Rollovers are prohibited.

For a thorough discussion of the payday loan industry and access to our payday loan training materials, we recommend you proceed to Payday

We maintain a Blog focused on small dollar lending at Payday Loan Industry Blog

The Minnesota attorney general has interpreted the following strategy to be the legal doctrine for Minnesota consumers. On the other hand, there are a significant number of payday loan legal counselors who disagree with the MN regulators. For brick-n-mortar lenders, these fee structures must be abided by; unless a tribe is the lender. So far, to our knowledge, no Internet lender has chosen to invest the financial costs associated with challenging the Minnesota AG.:
"Internet payday lenders that lend money to Minnesota borrowers must comply with state laws, even if their physical headquarters are in another state. Under Minnesota law, for loans between $350 and $1,000, payday lenders cannot charge more than 33 percent annual interest plus a $25 administrative fee."

"For loans less than $350, Minnesota law caps the fees that may be charged on a sliding scale as follows: $5.50 for loans up to $50; 10 percent of the loan amount plus a $5 fee on loans between $50 and $100; 7 percent of the loan amount (minimum of $10) plus a $5 fee on loans between $100 and $250; and 6 percent of the loan amount (minimum of $17.50) plus a $5 fee on loans between $250 and $350."

Minnesota Payday Loan Laws & Legislation State Information

Legal Status: Legal

Minn. Stat. 47.60 et seq.

Loan Terms:
Maximum Loan Amount: $350
Loan Term: Max: 30 days
Maximum Finance Rate and 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%

Debt Limits:
Maximum Number of Outstanding Loans at One Time: Not Specified
Rollovers Permitted: None (cannot repay with proceeds of another loan by same lender)
Cooling-off Period:
Repayment Plan:

Collection Limits:
Collection Fees: $30 NSF fee
Criminal Action:

Regulator: Minnesota Department of Commerce
Address: Division of Financial Examinations, 85 7th Place East, Suite 500 St. Paul MN 55101
Phone: (651) 296-2135
Fax: (651) 296-8591
Regulatory Contact: Kevin Murphy,, Deputy Commissioner
Regulator Website
Licensee Database