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2020 Minnesota Statutes


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Chapter 47

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Area 47.601


  • Attorney general
  • Banking Institutions
  • Commerce division
  • Customer security
  • Banking institutions
  • Industrial thrift and loan businesses
  • Loans
  • Payday advances
  • Popular names of functions
  • Regulated loan providers
  • Savings associations
  • Savings banks
  • Trust organizations

Current History

  • 2009 47.601 brand new 2009 c 68 s 3


Subdivision 1. Definitions.

(b) “Borrower” means someone who obtains a customer loan that is short-term for individual, family members, or home purposes.

(c) “Commissioner” means the commissioner of business.

(d) “customer short-term loan” means that loan to a debtor which includes a principal quantity, or an advance on a borrowing limit, of $1,000 or less and needs a minimum payment within 60 times of loan origination or credit advance greater than 25 % associated with the major stability or credit advance. Each new advance of money to a borrower under a consumer short-term loan agreement constitutes a new consumer short-term loan for the purposes of this section. A “customer short-term loan” doesn’t add any deal made under chapter 325J or a loan produced by a consumer short-term loan provider where, in the eventuality of standard in the loan, the only real recourse for data recovery of this balance due, aside from a lawsuit for damages when it comes to financial obligation, would be to continue against real items pledged by the debtor as security when it comes to loan.

(age) “customer lender that is short-term means a person or entity involved in the business enterprise of creating or organizing customer short-term loans, apart from a situation or federally chartered bank, cost savings bank, or credit union.

Subd. 2. Consumer short-term loan agreement.

(a) No agreement or contract between a customer short-term loan loan provider and a debtor moving into Minnesota may retain the following:

(1) a supply picking a legislation except that Minnesota legislation under that your agreement is construed or enforced;

(2) a supply selecting a forum for dispute quality apart from their state of Minnesota; or

(3) a supply restricting course actions against a customer short-term loan provider for violations of subdivision 3 or even for making customer short-term loans:

(i) without a license that is required by the commissioner; or

(ii) by which interest levels, charges, costs, or loan quantities exceed those allowable under part 47.59, subdivision 6, or 47.60, subdivision 2, except that by de minimis amounts if no pattern or training exists.

(b) Any supply forbidden by paragraph (a) is void and unenforceable.

(c) a consumer short-term loan loan provider must furnish a duplicate associated with penned loan agreement every single debtor. The agreement and disclosures must certanly be printed in the language where the loan had been negotiated using the debtor and must include:

(1) the title; target, which could never be a postoffice field; and cell phone number regarding the loan provider making the customer short-term loan;

(2) the title and name for the specific worker or agent whom signs the agreement with respect to the loan provider;

(3) an itemization of this charges and interest costs become compensated by the debtor;

(4) in bold, 24-point kind, the apr as computed under united states of america Code, chapter 15, part 1606; and

(5) a description for the debtor’s repayment responsibilities underneath the loan.

(d) The owner or assignee of a check or other tool evidencing a responsibility of a debtor regarding the a consumer short-term loan takes the tool susceptible to all claims by and defenses associated with the debtor up against the customer lender that is short-term.

Subd. 3. commercial collection agency.

a customer lender that is short-term or attempting to get on an indebtedness regarding the a consumer short-term loan should never participate in the prohibited business collection agencies practices referenced in part 332.37.

Subd. 4. Record maintaining; yearly reports; notifications.

As well as any kind of information needed to be filed under chapters 45 through 56, a consumer short-term loan provider must yearly register a written report utilizing the commissioner which contains listed here information for every single twelve months:

(1) the total dollar quantity, in addition to principal, gathered on customer short-term loans;

(2) the typical yearly portion price and variety of yearly portion prices for customer short-term loans;

(3) the sheer number of specific borrowers whom obtained more than one customer loans that are short-term

(4) a failure of this wide range of specific borrowers identified in clause (3) by the range specific borrowers whom obtained:

(i) five or higher loans;

(ii) ten or maybe more loans;

(iii) 15 or maybe more loans; and

(iv) 20 or even more loans; and

(5) the final number and buck quantity of loans charged down or written down.

Subd. 5. Jurisdiction.

For the purposes for this area, a customer short-term loan deal is regarded as to happen into the state of Minnesota in the event that debtor is a Minnesota resident together with debtor completes the deal, either really or electronically, while actually found in the state of Minnesota.

Subd. 6. Penalties for violation; personal right of action.

(a) with the exception of a “bona fide error” as established under United States Code, chapter 15, area 1640, subsection (c), a person or entity whom violates subdivision a few is likely to your debtor for:

(1) all cash gathered or gotten regarding the the mortgage;

(2) real, incidental, and damages that are consequential

(3) statutory damages as much as $1,000 per breach;

(4) expenses, disbursements, and attorney that is reasonable; and

(5) injunctive relief.

(b) as well as the remedies supplied in paragraph (a), that loan is void, and also the debtor is certainly not obligated to pay for any amounts owing in the event that loan is manufactured:

(1) by a customer short-term loan provider whom hasn’t acquired a relevant permit through the commissioner;

(2) in breach of any supply of subdivision a few; or

(3) by which interest, charges, costs, or loan quantities surpass the attention, charges, costs, or loan quantities allowable under parts 47.59, subdivision 6, and 47.60, subdivision 2.

Subd. 7. Attorney general enforcement.

The attorney general shall enforce this part under area 8.31.

Subd. 8. Remedies cumulative.

The treatments supplied in this part are cumulative plus don’t limit any treatment that is otherwise available. The conditions of the area are perhaps not exclusive consequently they are as well as virtually any demands, legal rights, treatments, and charges given by legislation.

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