Minnesota state map

Payday Loans in Minnesota

At a Glance
  • Nickname: The North Star State
  • Population: 5.61 million
  • Website: Minnesota.gov

Minnesota is known as the land of 10,000 lakes, although any resident worth his or her salt knows there are actually 11,842 lakes dotting the landscape of the North Star State. The unassuming border state is always high up in the rankings for best places to live, work, bike, and be really, really cold for several months on end.

But what is Minnesota not known for these days? Poverty.

Minnesota’s poverty rate has gradually dropped since 2014, when it was 11.5%. As of 2018, it’s 9.5%, one of the lowest in the country, and well below the national average of 11.8%. But despite the state’s generally rosy financial outlook and a cushy median income of $70,315 (over $8,000 more than the U.S. average!), there are still many cash-strapped Minnesotans.

Average Credit Card Debt and Median Household Income in Minnesota vs. the U.S.
The U.S.
Average Credit Card Debt (Q1 2019)
Median Household Income (2018)

Payday Loans in Minnesota

Payday loans, which are short-term loans aimed at borrowers who need money between paychecks, typically to cover bills, are legal in Minnesota. The agreements commonly require borrowers to pay back the loan in 14 days upon receiving their next paycheck.

In Minnesota law, the term “payday loan” isn’t typically used. Instead, you’ll hear the following two terms used to describe these types of loans: consumer small loans and consumer short-term loans. Consumer small loans represent loans of up to $350, and consumer short-term loans fall between $350 and $1,000.

There are a combined 115 licensed locations offering these two types of payday loans. Most of the stores (63%) are located in the 7-county metro area and in the metro area.

Payday Loan Statistics for Borrowers in Minnesota vs. Nationally
Average Loan Amount

There is no formal database tracking how many Minnesotans take out payday loans. However, one report estimates that 50,000 residents use payday loans at any given time. Between 1999 and 2012, payday lenders collected about $12 million in loan fees from Minnesotans. Another report indicates that the number of payday loans borrowed by Minnesota residents grew between 2007 and 2012 from 172,000 to 371,000. In 2014, the number of payday loans reached an all-time high of 385,681, valued at over $149 million.

Source: Human Impact Partners Report, 2016 – Minnesota Department of Commerce, 1999-2014.


Consumer Protection in Minnesota

How to Report a Lender in Minnesota

To report bad practices, file a complaint with the state’s commerce department here. In the online complaints section, choose the industry from the drop-down menu. There are four options: consumer small loans, industrial loan and thrift, payday lenders, and regulated lenders.

Not sure which to choose? Call the department at 651-539-1600. The consumer protection email is: consumer.protection@state.mn.us.


Payday Loans in Minnesota Cities

Check out these payday loan guides to the following cities in Minnesota:

Minneapolis/St. Paul | Duluth | Brainerd