Frequently Asked Questions for Payday Lenders

Consumer Small Loan Lenders, also known as payday lenders, offer small loans up to $350 for short terms of generally less than 30 days. A note is issued but repayment is usually required in the form of a post-dated check. See MS 47.60. The following will help you get your questions answered about how to make a consumer small loan in Minnesota.

• Is a license needed in Minnesota to make payday loans?

  A business entity engaged in the business of making consumer small loans to Minnesota residents must file as a consumer small loan lender.

   

• When can I start making consumer small loans?

  After the filing has been approved by the Commissioner.

   

• Does a company making payday loans electronically via the internet have to file an application as a consumer small loan?

  Internet payday lenders must be licensed and comply with Minnesota Statutes, Section 47.60.

   

• How much can a consumer small loan lender charge?

  Charges are limited to the amounts set forth in 47.60, subd. 2.

   

• What is the maximum loan amount?

  $350.00

   

• Does a consumer small loan have to give Truth-in-Lending disclosures?

  Yes. Disclosures must meet the requirements of Regulation Z (12C.F.R. part 226).

   

• Where do my rates have to be posted?

  A full schedule of charges must be prominently displayed at each place of business that includes the method of computing those charges. That would include an internet website.