Payday Loans in Minnesota

The wild west of Internet faxless payday lending is starting to get some much-needed oversight.

Recently, the Minnesota Department of Commerce announced it is now requiring all payday lenders making small denomination, short-term loans to Minnesota residents via the internet be licensed pursuant to Minnesota law. Licensing is required regardless of whether the lender has a physical presence in Minnesota. Payday lenders will also be required to comply with the limits on loan amounts, fees and charges, and other requirements of state law.

After further review of Minnesota law and statute the Department is now of the opinion that a payday loan made via the internet is made in the state where the borrower resides and the payday lender making such a loan is subject to Minnesota laws and licensing. As a result, all payday lenders making loans to Minnesota residents via the internet must meet the new licensing requirements effective December 1, 2008.

Here's what that means to folks who live in Minnesota and who need to get payday loans:

• Rates will be lower (as Minnesota has regulations limiting the amount that can be charged);
• You will be able to get loans from regulated lenders, providing better quality and improved service; and
• You will need to make sure that the lender you are matched with is really licensed in Minnesota.

Remember, not all Internet lenders comply with State laws.  NextDayCheck (which is NOT a lender) tries to match every customer with the best licensed lenders available.  However, if you apply to be matched with a lender through NextDayCheck.com and find that the lender you were matched with is not licensed in your State, do not take the loan offered to you — remember, you are under no obligation to accept any loan offered to you.