Minnesota Fringe Banking
| 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: 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?
