Consumer Small Loan and Short-term Loan Legislative Changes Effective January 1, 2024
On May 24, 2023, Governor Tim Walz signed Minnesota Session Law 2023, Chapter 57, Senate File 2744 into law, which included changes to the regulation of Consumer Small Loans and Consumer Short-Term Loans issued under Minn. Stat. §§ 47.60 and 47.601. You can access a copy of law here. These changes are effective January 1, 2024, and apply to all consumer small loans and consumer short-term loans originated on or after that date. Please click on the following link for a summary of the new law, with information about the key differences between the new and current laws: Changes to Minnesota Consumer Small and Short-Term Loan Requirements (.pdf).
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. These companies are also known as payday lenders.
A consumer small loan company (payday lender) making small loans to Minnesota residents must be licensed but does not have to have a physical location in Minnesota. Loans made electronically via the Internet are covered under Minnesota Statute §47.60.
Minnesota uses the Nationwide Multistate Licensing System (NMLS). Company/business entities applying as payday lenders are required to use the NMLS.