Minnesota loan laws for payday loans are about as confusing as they come.
This state is set up for major payday loan traps, and borrowers must beware of how fast a person can get in trouble in this state.
At first glance they seem like any other state, with a loan limit of $350.00 and duration of the loan is limited to 30 days. The interest is a whole different picture.
This is a quote from the website Credit.com:
” (i) On any amount up to and including $50, a charge of $5.50 may be added; (ii) on amounts in excess of $50, but not more than $100, a charge may be added equal to ten percent of the loan proceeds plus a $5 administrative fee; (iii) on amounts in excess of $100, but not more than $250, a charge may be added equal to seven percent of the loan proceeds with a minimum of $10 plus a $5 administrative fee; (iv) for amounts in excess of $250 and not greater than $350, a charge may be added equal to six percent of the loan proceeds with a minimum of $17.50 plus a $5 administrative fee. After maturity, the contract rate must not exceed 2.75 percent per month of the remaining loan proceeds after the maturity date calculated at a rate of 1/30 of the monthly rate in the contract for each calendar day the balance is outstanding. (Minnesota Small Loans – Chapter 47.60)”
This is as big a trap as I have ever seen, and it is no wonder people in this state are in big trouble with payday loan debt!
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