fedgazette

Minnesota Fringe Banking

Published October 1, 2000  |  October 2000 issue

Payday Loans Check Cashing Title Loans Pawnbroking
How Many?
First license issued in January 1997, has grown to 34 today.
How Many?
69 outlets today, roughly double the number two years ago.
How Many?
Unknown. "Special provision" regulations allow title lending in pawn shops. How many do so is not known, but believed to be very few, given fee caps on pawnbroking.
How Many?
135, according to a national business-to-business marketing firm.
Licensing:
Department of Commerce
Licensing:
Department of Commerce, municipalities
Licensing:
Unnecessary, given prior approval for pawn outlet.
Licensing:
Muncipalities

Fee caps:
For loans between $50 and $350, there is a sliding scale of approximately 10 percent to 6 per cent of loan proceeds, plus a $5 administrative fee.

Only one active loan is allowed per customer. All loans must be for 30 days or less; if not paid off after 30 days, the loan rate defaults to a maximum monthly interest rate of 2.75 percent.

Fee caps:
First-time user fee of 6 percent of check's value for payroll checks, and 3 percent thereafter (or $1, whichever is greater in both cases); for government checks, 5 percent fee for the first time, and 2.5 percent thereafter (or $1, whichever is greater in both cases.)
Fee caps:
Interest rates capped at 3 percent monthly, or 36 percent APR, plus a "reasonable fee for storage and services."
Fee caps:
As of 1996, pawn interest rates capped at 3 percent monthly, or 36 percent APR, plus a "reasonable fee for storage and services."

Sources: Minnesota Department of Commerce; American Business Lists

Return to: A helping hand, or new age loan sharking?

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