Minnesota Session Laws - 1987, Regular Session

  

                         Laws of Minnesota 1987 

                        CHAPTER 341-S.F.No. 800 
           An act relating to financial institutions; authorizing 
          certain charges on open-end loan account arrangements; 
          amending Minnesota Statutes 1986, section 48.185, 
          subdivision 4. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1986, section 48.185, 
subdivision 4, is amended to read:  
    Subd. 4.  No charges other than those provided for in 
subdivision 3 shall be made directly or indirectly for any 
credit extended under the authority of this section, except that 
there may be charged to the debtor: 
    (a) annual charges, not to exceed $50 per annum, payable in 
advance, for the privilege of using a bank credit card; 
    (b) charges for premiums on credit life and credit accident 
and health insurance if: 
    (1) the insurance is not required by the financial 
institution and this fact is clearly disclosed in writing to the 
debtor; and 
    (2) the debtor is notified in writing of the cost of the 
insurance and affirmatively elects, in writing, to purchase the 
insurance; 
    (c) charges for the use of an automated teller machine when 
cash advances are obtained pursuant to this section through the 
use of an automated teller machine; 
      (d) in the case of a financial institution referred to in 
subdivision 1 that does not charge an annual fee, delinquency 
and collection charges as follows: 
    (1) on each payment in arrears for a period not less than 
ten days, in an amount not in excess of the delinquency and 
collection charge permitted in section 168.71;  
    (2) for any monthly or other periodic payment period where 
the debtor has exceeded or thereby exceeds the maximum approved 
credit limit under the open-end loan account arrangement, in an 
amount not in excess of the service charge limitations in 
section 332.50; and 
    (3) for any returned check or returned automatic payment 
withdrawal request, in an amount not in excess of the service 
charge limitation in section 332.50; and 
    (e) to the extent not otherwise prohibited by law, charges 
for other goods or services offered by or through a financial 
institution referred to in subdivision 1 which the debtor elects 
to purchase, including, but not limited to, charges for check 
and draft copies and for the replacement of lost or stolen cards.
    Approved June 1, 1987