This bill amends Minnesota Statutes to clarify the definitions and regulations surrounding consumer small and short-term loans, specifically including earned wage access payday loans. Key changes include the definition of "consumer small loan" to encompass loans that are either recourse or nonrecourse, and the introduction of a new definition for "fee," which refers to any additional amount charged to the borrower beyond the principal, such as membership or convenience fees. The bill also expands the definition of "consumer small loan lender" to include entities that facilitate loans electronically, even if they do not have a physical presence in Minnesota.

Additionally, the bill modifies the definition of "consumer short-term loan" to include loans with a principal amount of $1,300 or less, and it specifies that each new advance under a short-term loan agreement is considered a separate loan. The amendments also clarify the responsibilities of business entities that engage in making consumer small loans, requiring them to file with the commissioner and maintain certain liquid assets. Overall, the bill aims to enhance consumer protection and ensure transparency in the lending process for small and short-term loans in Minnesota.

Statutes affected:
Introduction: 47.60, 47.601