HF1501 Summary

• Caps combined interest, finance charges, and fees on consumer small loans at 36 percent annual percentage rate, replacing previous tiered fee structure.

• Limits consumer short-term loan term to maximum 30 calendar days with post-maturity rate capped at 2.75 percent per month.

• Prohibits loan contracts from selecting non-Minnesota law, choosing non-Minnesota forums, or limiting class actions for violations or unlicensed lending.

• Establishes borrower remedies including restitution of all money collected, actual and consequential damages, statutory damages up to $1,000 per violation, and attorney fees for contract violations.

• Voids loans made by unlicensed lenders or in violation of rate and charge limits, leaving borrowers with no repayment obligation.