MN HF2293

Removes section 47.60 from the list of authorized lending statutes for financial institutions, effectively restricting payday lending authority.

Requires consumer short-term lenders to verify borrowers have reasonable ability to repay by checking income, expenses, and credit history, with a maximum debt-to-income ratio of 41 percent.

Limits borrowers to four consumer short-term loans within 365 days, except when borrower attests inability to obtain other loans and needs funds for student loan, mortgage, rent, or child support payments (with interest rate capped at federal military lending rate for those exceptions).

Prohibits consumer short-term loan contracts from including provisions that select non-Minnesota law, choose forums outside Minnesota, or limit class actions for licensing violations or excessive fees and interest rates.

Requires consumer short-term lenders to independently verify the total number of loans and days of indebtedness through examination of their own records and a private consumer reporting service, and to promptly report each loan transaction.

Effective August 1, 2014, for consumer short-term loans made on or after that date.