Through a final order, the Minnesota Department of Commerce has voided any short-term consumer loans, also known as payday loans, made to Minnesotan consumers by Strategic Solution Services, Inc., who also did business as Arrow Mountain Funding and Line of Credit Now. The lender was not licensed to provide loans in Minnesota and was not complying with the state’s lending laws. Commerce also fined the company $10,000.  

The Department of Commerce is unaware of how many loans have been made to Minnesota consumers because the company did not comply with Commerce’s requests for information regarding loans made to Minnesota consumers.  

Consumers with questions or concerns about payday loans can contact Commerce’s Enforcement Division: File a complaint online, email consumer.protection@state.mn.us, or call 651-539-1600.   

“We want all Minnesota consumers who took payday loans from this unlicensed company to be aware of this action by the Department,” said Commerce Assistant Commissioner of Enforcement Jacqueline Olson. “Commerce remains committed to protecting consumers from unscrupulous lenders.”   

Payday loans are short-term, high-interest-rate loans that are used mostly by consumers who lack access to traditional forms of credit. In 2023, Minnesota laws regulating payday loans were updated to add consumer protections, including maximum caps on loan charges and fees to 50% APR (annual percentage rate). 

As described in the order, one consumer took out a payday loan from Strategic Solution Services for $500 and made 12 payments totaling $1,682.82. The lender did this by deducting wages from the consumer’s paycheck.  After the consumer withdrew consent for Strategic Solution Services to make automatic deductions, the company sent a “Demand Order” to the consumer’s employer and claimed that the consumer still owed over $2,000 on the initial $500 payday loan. 

Among the findings of Commerce’s final order with Strategic Solution Services:  

• Short-term consumer loans by Strategic Solution Services to Minnesotan consumers are subject to Minnesota law. The company was never licensed by Commerce to act as a consumer short-term lender. 
• Minnesota law limits the interest rates and fees that may be charged to a consumer and limits the duration of payday loans to no longer than 30 days.  

The full order for Strategic Solution Services can be found on the Commerce Actions and Regulatory Documents, or CARDS, database. 

CONSUMER GUIDANCE ON LOANS  

It is important for Minnesota consumers to understand who their lender is when obtaining a consumer loan. Below is some guidance: 

1. Check the lender’s license status in Minnesota. Consumers can verify a lending license by checking Commerce’s License Lookup. If you come across a lender who is not licensed in the state but is offering loans in Minnesota, please contact the Minnesota Department of Commerce.
2. Read the fine print. No matter who you borrow from, always get a statement that clearly explains the costs of the loan. If the lender is unwilling to provide you with the contract upfront, that’s a red flag. Be sure you know how much you will owe, when payments are due, how payments will be collected, and if you can afford the total repayment amount.
3. Consider alternatives. Try to avoid payday or short-term loans, which tend to have high fees and high interest rates. Check options such as a loan from a local bank or credit union. If you are having trouble paying bills, contact your creditors to request an extension. 
4. Contact a local credit counseling service: Credit Counseling Services to Debtors List maintained by Commerce pursuant to Minn. Stat. sec. 332.365. 

Minnesota Department of Commerce Consumer Service Center   

The Minnesota Department of Commerce works to assist and protect consumers, and ensure a strong, fair marketplace. Minnesota consumers and businesses can contact Commerce’s Enforcement Division about concerns or complaints:  

• File a complaint online  
• Email or call: consumer.protection@state.mn.us | 651-539-1600.   
• Verify whether a short-term loan (or payday) company is licensed to do business in Minnesota with our License Lookup. 
• Search Commerce Actions and Regulatory Documents to view past enforcement actions. 

Connect with the Minnesota Commerce Department  

Get updates and news from the Minnesota Department of Commerce by following Commerce at mn.gov/commerce or @MNCommerce on social media. 

MEDIA CONTACT:
Mo Schriner, Communications Director
Minnesota Department of Commerce
mo.schriner@state.mn.us