H.F. No. 102 - Summary

• Establishes a 36 percent annual percentage rate (APR) cap for consumer small loans, replacing tiered fee structures based on loan amounts.

• Limits consumer small loan terms to no more than 30 calendar days and restricts post-maturity interest rates to 2.75 percent per month.

• Prohibits loan splitting, refinancing with the same lender, and allows borrowers to have only one outstanding small loan with a maximum principal of $350 at any time.

• Requires consumer short-term loan contracts to prohibit non-Minnesota law selection, non-Minnesota forums for disputes, and class action limitations; makes violating provisions void and unenforceable.

• Imposes penalties of up to $1,000 per violation, actual damages, attorney fees, and voids loans made without proper licensing or in violation of rate caps; effective August 1, 2021.