Minnesota Publishes Dollar Amounts Regarding Consumer Credit Code Adjustments
The Minnesota Department of Commerce published its Consumer Credit Code Adjustments for 2018. Dollar amounts in the Regulated Loan Act and the Minnesota Consumer Credit Code will increase effective July 1, 2018.
Under Minnesota Statutes, Sections 47.59, subdivision 3(i), and 56.131, subdivision 4, dollar amounts are subject to change on July 1 of every even numbered year based on the percentage change in the Implicit Price Deflator for the Gross Domestic Product.
The original and current dollar amounts under the, Minnesota Statutes, Chapter 47 are as follows:
- Principal subject to 33% interest dollar amount changed from $750 to $1238.
- Minimum refund dollar amount changed from $5 to $8.25.
- Default charges dollar amount changed from $5.20 to $8.58.
- Loan administration fee dollar amount changed from $4320 to $7128.
The original and current dollar amounts under the Minnesota Statutes, Chapter 56, are as follows:
- Assumption fee dollar amount changed from $240 to $396.
- Minimum real estate secured loan dollar amount changed from $4320 to $7128.
- Maximum closing costs on real estate secured loan dollar amount changed from $400 to $660.
- Minimum new fund advance for discount points and appraisal Fees dollar amount changed $1000 to $1650.
- Minimum real estate secured loan for discount points dollar amount changed from $12000 to $19800.
The next adjustment (for July 1, 2020) is scheduled on or before April 30, 2020 and will be based on the December 2019 index.
Rhona Kyeyune, LLM, is a regulatory compliance consultant with CLA. She is a graduate of Makerere University and earned her master of laws at Boston University School of Law.
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