MN HF3680

Minnesota declares it does not want federal amendments from the Depository Institutions Deregulation and Monetary Control Act of 1980 (Public Law 96-221) that prescribe interest rates and preempt state rates to apply to consumer loans made in Minnesota.

Consumer loans made in Minnesota are subject to state-established rates and Minnesota law if the borrower is a Minnesota resident and completes the transaction either personally or electronically while physically located in Minnesota.

For standard loans, financial institutions may charge interest not exceeding the greater of 21.75 percent annually or a tiered rate (33 percent on balances up to $1,350 and 19 percent on amounts exceeding $1,350).

For credit card open-end credit, the maximum rate is 18 percent annually, or the rate allowed by the financial institution's home state if that rate exceeds 18 percent.

Effective August 1, 2024, for loans executed on or after that date.