This bill proposes to amend various sections of Minnesota Statutes to limit the annual percentage rates (APRs) for credit card finance charges to a maximum of ten percent. Specifically, it amends section 47.59, subdivision 3, to change the maximum APR for credit card loans from 18 percent to ten percent. Additionally, it introduces a new subdivision in section 48.185 that establishes a maximum finance charge for credit cards at the same ten percent rate. The bill also includes provisions that clarify that these changes will take effect only upon a change in federal law that requires national banking associations and federally chartered savings associations to comply with state laws regarding maximum finance charges.

Furthermore, the bill amends section 52.14, subdivision 2, to specify that the maximum allowable interest rate charged by credit unions does not apply to credit card extensions of credit. It also introduces a new section, 52.138, which states that the interest rate on unpaid balances of credit card loans made by credit unions must not exceed the ten percent rate established in section 48.185, subdivision 3b. The effective date for all these changes is contingent upon the aforementioned federal law change, with the commissioner of commerce responsible for notifying the revisor of statutes when such a change occurs.

Statutes affected:
Introduction: 47.59, 48.185, 52.14