Bill > SF1648

This bill proposes to regulate the interest rates and other charges for consumer short-term and small loans in Minnesota. The key provisions include: 1. Limiting the maximum annual percentage rate (APR) for consumer small loans to 36%. This replaces the previous tiered structure of fees and charges. 2. Establishing a 30-calendar day maximum loan term for consumer small loans. 3. Prohibiting certain contract provisions in consumer short-term loan agreements, such as choosing a non-Minnesota forum for dispute resolution or waiving the borrower's right to bring a class action lawsuit. 4. Imposing penalties, including voiding the loan, if a lender violates the interest rate or other requirements for consumer small or short-term loans. 5. Requiring lenders of consumer small or short-term loans to comply with the specific provisions in sections 47.60 and 47.601 of Minnesota Statutes, in addition to the general lending regulations. This bill aims to provide more consumer protections and limit the high costs associated with certain short-term and small loan products in Minnesota.