CHAPTER 53C
MOTOR VEHICLE RETAIL INSTALLMENT SALES
MOTOR VEHICLE RETAIL INSTALLMENT SALES;
DEFINITIONS.
53C.01
SALES FINANCE COMPANY; LICENSE, FEES,
REFUND.
53C.02
SUSPENSION OR REVOCATION OF VEHICLE
SALES FINANCE COMPANY LICENSE; APPEAL.
53C.03
COMPLAINT ALLEGING VIOLATION OF VEHICLE
SALE INSTALLMENT CONTRACT LAWS.
53C.04
TESTIMONIAL POWERS OF COMMISSIONER.53C.05
VEHICLE CONDITIONAL SALES INSTALLMENT
CONTRACT; EXAMINATION, SPECIAL
INVESTIGATION, COST ASSESSMENT.
53C.06
VEHICLE SALES FINANCE COMPANY BOOKS OF
ACCOUNT, ANNUAL REPORT.
53C.07
MOTOR VEHICLE RETAIL INSTALLMENT
CONTRACT.
53C.08
CONSUMER REPORT DISCLOSURE.53C.083
FINANCE CHARGE ON INSTALLMENT CONTRACT
FOR VEHICLE OR MANUFACTURED HOME.
53C.09
VEHICLE INSTALLMENT CONTRACT
PREPAYMENT, REFUND CREDITS, ALLOWANCE.
53C.10
EXTENSION OF VEHICLE INSTALLMENT
CONTRACT SCHEDULES, PAYMENTS.
53C.11
VEHICLE SALES FINANCE COMPANY
VIOLATIONS; REMEDIES.
53C.12
SEVERABILITY CLAUSE.53C.13
CITATION OF ACT.53C.14
53C.01 MOTOR VEHICLE RETAIL INSTALLMENT SALES; DEFINITIONS.
Subdivision 1. Scope. For the purposes of sections 53C.01 to 53C.14, the terms defined in this section
have the meanings given them.
Subd. 2. Cash sale price. "Cash sale price" means the price at which the seller would in good faith sell
to the buyer, and the buyer would in good faith buy from the seller, the motor vehicle which is the subject
matter of the retail installment contract, if such sale were a sale for cash, instead of a retail installment sale.
The cash sale price may include any taxes, charges for delivery, servicing, repairing, or improving the motor
vehicle, including accessories and their installation, and any other charges agreed upon between the parties.
The cash price may include a documentary fee or document administration fee authorized under section
168.27, subdivision 31.
Subd. 3. Commissioner. "Commissioner" means the commissioner of commerce of the state of Minnesota.
Subd. 4. Finance charge. "Finance charge" means any charge payable directly or indirectly by the buyer
and imposed directly or indirectly by the seller as a condition of the extension of credit under a retail
installment contract, and includes a time price differential. The term does not include the cost of any insurance
and other benefits included in the retail installment contract and any other permissible cost or expense
incidental to the retail installment sale or any charge of a type payable in a comparable cash transaction, or
any taxes, fees, or charges that actually are or will be paid to public officials or government agencies for
determining the existence of or for perfecting, releasing, or satisfying a security interest. The term also does
not include premiums for insurance against loss of or damage to property, or against liability arising out of
the ownership or use of property if the insurance coverage may be obtained from a person of the buyer's
choice.
Subd. 4a. Global positioning system starter interrupt device. "Global positioning system starter
interrupt device" or "GPS starter interrupt device" means a device installed on a motor vehicle by a motor
vehicle dealer that enables an individual who is not in possession of the motor vehicle to remotely disable
the motor vehicle's ignition. GPS starter interrupt device includes a device commonly referred to as a fuel
or ignition kill switch.
Subd. 5. Motor vehicle. "Motor vehicle" means any device propelled or drawn by any power other than
muscular power, in, upon, or by which any person or property is, or may be transported or drawn upon a
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highway, excepting building and road construction equipment not subject to motor vehicle registration fees,
snowmobiles, three-wheel off-road vehicles, boat, snowmobile, and other utility trailers, farm tractors, and
agricultural machinery not designed primarily for highway transportation, but which may incidentally
transport persons or property on a public highway, or any other device which may not be lawfully operated
upon a highway at the time of sale.
Subd. 6. Person. "Person" means an individual, partnership, corporation, association, and other group
however organized.
Subd. 7. Retail buyer or buyer. "Retail buyer" or "buyer" means a person who buys or agrees to buy
a motor vehicle from a retail seller not for the purpose of resale and who executes a retail installment contract
in connection therewith.
Subd. 8. Retail installment contract. "Retail installment contract" means any agreement, entered into
in this state, evidencing a retail installment sale of a motor vehicle, other than for the purpose of resale, when
purchased primarily for personal, family or household use, pursuant to which title to, or a lien upon the
motor vehicle is retained by the retail seller as security for the retail buyer's obligation. This term includes
a mortgage, conditional sale contract, or any contract for the bailment or leasing of a motor vehicle by which
the bailee or lessee contracts to pay as compensation for its use a sum substantially equivalent to the retail
installment sale price of the motor vehicle and by which it is agreed that the bailee or lessee is bound to
become, or has the option of becoming, the owner of such motor vehicle for no additional consideration or
for nominal additional consideration. "Retail installment contract" does not include any agreement, entered
into in this state, evidencing an installment sale of a motor vehicle purchased primarily for use in business.
For purposes of this subdivision, "business" means a commercial or industrial enterprise which is carried
on for the purpose of active or passive investment or profit.
Subd. 9. Retail installment sale. "Retail installment sale" means any sale evidenced by a retail installment
contract wherein retail buyer agrees to buy and retail seller agrees to sell a motor vehicle at a sale price
payable in one or more installments with the payment of a finance charge.
Subd. 10. Retail seller or seller. "Retail seller" or "seller" means a person who sells or agrees to sell a
motor vehicle under a retail installment contract to a retail buyer.
Subd. 11. Rule of construction. Words in the singular include the plural and vice versa.
Subd. 12. Sales finance company. "Sales finance company" means a person engaged, in whole or in
part, in the business of purchasing retail installment contracts entered into in this state from one or more
retail sellers. The term includes a bank, trust company, or industrial loan and thrift company, if so engaged.
The term also includes a retail seller engaged, in whole or in part, in the business of creating and holding
retail installment contracts. The term does not include the pledges of an aggregate number of the contracts
to secure a bona fide loan thereon.
Subd. 12a. Service contract. "Service contract" has the meaning given it in section 59B.02, subdivision
11.
Subd. 12b. Surface protection product. "Surface protection product" means the following products:
(1) undercoating;
(2) rustproofing;
(3) chemical or film paint sealant or protectant; or
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(4) chemical sealant or stain inhibitor for carpet and fabric.
Subd. 12c. Theft deterrent device. "Theft deterrent device" means the following devices:
(1) a vehicle alarm system;
(2) a window etch product;
(3) a body part marking product;
(4) a steering lock; or
(5) a pedal or ignition lock.
Subd. 13. Total of payments. "Total of payments" means the amount which the buyer contracts to pay
under a retail installment contract, excluding any down payment.
Subd. 14. Optional electronic transfer fee. "Optional electronic transfer fee" means a charge for services
agreed upon between the parties for electronic transmission of ownership records. The charge must be
separately stated and identified as "optional electronic transfer fee" on the sales agreement maintained under
Minnesota Rules, part 7400.5200. At least half of the fee must be paid to an electronic transmission service
provider.
History: 1957 c 266 s 1; 1959 c 54 s 1; 1961 c 438 s 1; 1971 c 577 s 11; 1980 c 614 s 95; 1982 c 473
s 27; 1983 c 289 s 114 subd 1; 1984 c 655 art 1 s 92; 1987 c 349 art 2 s 3-8; 2003 c 128 art 14 s 2; 2005
c 19 s 1; 2005 c 45 s 4,5; 2007 c 99 s 1-3; 2008 c 344 s 1; 2010 c 382 s 13; 1Sp2017 c 3 art 3 s 1; 2020 c
80 art 1 s 6; 2023 c 57 art 4 s 1,2
53C.02 SALES FINANCE COMPANY; LICENSE, FEES, REFUND.
(a) No person shall engage in the business of a sales finance company in this state without a license
therefor as provided in sections 53C.01 to 53C.14 provided, however, that no bank, trust company, savings
bank, savings association, or credit union, whether state or federally chartered, industrial loan and thrift
company, or licensee under the Minnesota Regulated Loan Act authorized to do business in this state shall
be required to obtain a license under sections 53C.01 to 53C.14.
(b) The application for a license shall be in writing, under oath and in the form prescribed by the
commissioner. The application shall contain the name of the applicant; date of incorporation, if incorporated;
the address where the business is or is to be conducted and similar information as to any branch office of
the applicant; the name and resident address of the owner or partners, or, if a corporation or association, of
the directors, trustees and principal officers, and other pertinent information the commissioner requires.
(c) The licensee fee for the fiscal year beginning July 1 and ending June 30 of the following year, or
any part thereof shall be the sum of $250 for the principal place of business of the licensee, and the sum of
$125 for each branch of the licensee. Any licensee who proves to the satisfaction of the commissioner, by
affidavit or other proof satisfactory to the commissioner, that during the 12 calendar months of the immediately
preceding fiscal year, for which the license has been paid that the licensee has not held retail installment
contracts exceeding $15,000 in amount, shall be entitled to a refund of that portion of each license fee paid
in excess of $25. The commissioner shall certify that the licensee is entitled to a refund, and payment of the
refund shall be made by the commissioner. The amount necessary to pay for the refundment of the license
fee is appropriated from the financial institutions account under section 46.131, subdivision 11. All license
fees received by the commissioner under sections 53C.01 to 53C.14 shall be deposited with the commissioner
of management and budget.
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(d) Each license shall specify the location of the office or branch and must be conspicuously displayed
there. In case the location be changed, the commissioner shall endorse the change of location on the license.
(e) Upon the filing of such application, and the payment of the fee, the commissioner shall issue a license
to the applicant to engage in the business of a sales finance company under and in accordance with the
provisions of sections 53C.01 to 53C.14 for a period which shall expire the last day of June next following
the date of its issuance. The license shall not be transferable or assignable. No licensee shall transact any
business provided for by sections 53C.01 to 53C.14 under any other name.
(f) Section 58A.04, subdivisions 2 and 3, apply to this section.
History: 1957 c 266 s 2; 1959 c 364 s 1; 1961 c 281 s 1; 1969 c 399 s 1; 1973 c 492 s 14; 1976 c 86 s
1; 1981 c 220 s 15; 1983 c 230 s 3; 1984 c 576 s 24; 1986 c 444; 1995 c 202 art 1 s 25; 1999 c 151 s 40;
2003 c 112 art 2 s 50; 2005 c 19 s 1; 2009 c 101 art 2 s 109; 2020 c 80 art 1 s 7; 2022 c 93 art 2 s 15
53C.03 SUSPENSION OR REVOCATION OF VEHICLE SALES FINANCE COMPANY LICENSE;
APPEAL.
(a) A license may be suspended or revoked by the commissioner on the following grounds:
(1) material misstatement in application for license;
(2) intentional failure to comply with any provision of sections 53C.01 to 53C.14 relating to retail
installment contract;
(3) defrauding any retail buyer to the buyer's damage;
(4) fraudulent misrepresentation, circumvention or concealment by the licensee through whatever
subterfuge or device of any of the material particulars or the nature thereof required to be stated or furnished
to the retail buyer under sections 53C.01 to 53C.14.
(b) If a licensee is a firm, association or corporation, it shall be sufficient cause for the suspension or
revocation of a license that any officer, director or trustee of a licensed firm, association or corporation, or
any member of a licensed partnership, has so acted or failed to act as would be cause for suspending or
revoking a license to such part as an individual. Each licensee shall be responsible for the acts of any or all
of the licensee's employees while acting as the licensee's agent, if the licensee after actual knowledge of that
employee's act retained the benefits, proceeds, profits or advantages accruing from the acts or otherwise
ratified the acts.
(c) No license shall be suspended or revoked except after hearing. The commissioner shall give the
licensee at least ten days' written notice, in the form of an order to show cause, of the time and place of the
hearing by certified mail addressed to the principal place of business in this state of the licensee. The notice
shall contain the grounds of complaint against the licensee. Any order suspending or revoking the license
shall recite the grounds upon which it is based. The order shall be entered upon the records of the
commissioner and shall not be effective until after 30 days' written notice thereof given after such entry
forwarded by certified mail to the licensee at such principal place of business. No revocation, suspension
or surrender of any license shall impair or affect the obligation of any lawful retail installment contract
acquired previously thereto by the licensee.
(d) Within 30 days after the service of notice of any order of suspension or revocation of a license, the
licensee aggrieved may appeal from the order to the district court for the county in which the principal place
of business of the licensee in this state is located, by service of a written notice of appeal upon the
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commissioner, and filing it with proof of service with the court administrator of the court to which the appeal
is taken, within five days. The district court has jurisdiction over the appeal. It shall be entered upon the
records of the court and tried according to the Rules of Civil Procedure in so far as they are applicable. Upon
receiving service of a notice of appeal, the commissioner shall file with the court administrator of the district
court to which the appeal is taken a certified copy of the order appealed from and of the order to show cause
upon which it was based. Unless otherwise ordered by the court, the documents filed shall frame the issues
to be determined upon the appeal. The court shall determine, de novo, all questions, both of fact and of law,
touching upon the legality and reasonableness of the determination of the commissioner, and shall render
such judgment as shall be lawful and just. Pending final judgment on the appeal, the order appealed from
shall be stayed. Upon motion of the licensee or the commissioner, the appeal shall be tried ahead of all other
actions pending before the court except criminal cases. Appeals may be taken as in other civil cases.
History: 1957 c 266 s 3; 1978 c 674 s 60; 1983 c 247 s 68; 1986 c 444; 1Sp1986 c 3 art 1 s 82; 2005
c 19 s 1
53C.04 COMPLAINT ALLEGING VIOLATION OF VEHICLE SALE INSTALLMENT CONTRACT
LAWS.
Any retail buyer having reason to believe that sections 53C.01 to 53C.14 relating to the buyer's retail
installment contract has been violated may file with the commissioner a written complaint setting forth the
details of such alleged violation and the commissioner, upon receipt of such complaint, may inspect the
pertinent books, records, letters and contracts of the licensee, assignee of the licensee or retail seller, and of
the retail seller involved, relating to such specific written complaint.
History: 1957 c 266 s 4; 1986 c 444; 1994 c 382 s 14; 1996 c 414 art 1 s 31; 2005 c 19 s 1
53C.05 TESTIMONIAL POWERS OF COMMISSIONER.
(a) The commissioner shall have power to issue subpoenas to compel the attendance of witnesses and
the production of documents, papers, books, records and other evidence before the commissioner in any
matter over which the commissioner has jurisdiction, control or supervision pertaining to sections 53C.01
to 53C.14. The commissioner shall have the power to administer oaths and affirmations to any person whose
testimony is required.
(b) If any person shall refuse to obey any such subpoena, or to give testimony, or to produce evidence
as required thereby, any judge of any district court may, upon application and proof of such refusal, make
an order for the issuance of a subpoena, or subpoena duces tecum, for the witness to appear before the
commissioner and to give testimony, and to produce evidence as required thereby. Upon filing such order
in the office of the court administrator of such court the commissioner shall issue a subpoena, as directed,
under the seal of said court, requiring the person to whom it is directed to appear at the time and place therein
designated.
(c) If any person served with any such subpoena shall refuse to obey the same, or to give testimony or
to produce evidence as required thereby, the commissioner may report such refusal to the court, and the
court shall thereupon enforce obedience to the subpoena in the manner provided by law for enforcing
obedience to subpoenas of the court.
History: 1957 c 266 s 5; 1986 c 444; 1Sp1986 c 3 art 1 s 82; 2005 c 19 s 1
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53C.06 VEHICLE CONDITIONAL SALES INSTALLMENT CONTRACT; EXAMINATION,
SPECIAL INVESTIGATION, COST ASSESSMENT.
(a) For the purpose of discovering violations of sections 53C.01 to 53C.14 or securing information
lawfully required by the commissioner hereunder, the commissioner may, at any time, either personally or
by a person or persons duly designated by the commissioner, investigate the conditional sales contracts and
business related to the conditional sales contracts and examine the books, accounts, records, and files used
therein, of every licensee, assignee of the licensee, and of every person who shall be engaged in the business
of a sales finance company, including the retail seller and assignee of the retail seller, whether the person
shall act as principal or agent, or under or without the authority of sections 53C.01 to 53C.14. For that
purpose, the commissioner and the commissioner's duly designated representative shall have free access to
the offices and places of business, books, accounts, papers, records, files, safes, and vaults of all these
persons. The commissioner and all persons duly designated by the commissioner shall have authority to
require the attendance of and to examine, under oath, all persons whomsoever whose testimony the
commissioner may require relative to the conditional sales contract or the business or to the subject matter
of any examination, investigation, or hearing.
(b) The commissioner may make an examination of the affairs, business, office, and records of licensees,
and of other persons subject to examination under this section, as often as considered necessary. The
commissioner may assess a fee covering the necessary costs of an examination or special investigation under
this section, section 53C.04, or reports filed under section 53C.07. The fee is payable to the commissioner
on the commissioner's request for payment. The commissioner may maintain an action for the recovery of
the costs in any court of competent jurisdiction.
History: 1971 c 398 s 1; 1981 c 220 s 16; 1986 c 444; 1987 c 349 art 2 s 9; 1996 c 414 art 1 s 32; 2005
c 19 s 1
53C.07 VEHICLE SALES FINANCE COMPANY BOOKS OF ACCOUNT, ANNUAL REPORT.
(a) The licensee shall keep and use in the licensee's business such books, accounts, and records as will
enable the commissioner to determine whether the licensee is complying with the provisions of sections
53C.01 to 53C.14 and with the rules lawfully made by the commissioner hereunder. Every licensee shall
preserve such books, accounts, and records, including cards used in the card system, if any, for at least two
years after making the final entry on any conditional sale contract recorded therein.
(b) Each licensee shall annually on or before March 15 file a report to the commissioner giving such
relevant information as the commissioner reasonably may require concerning the business and operations
during the preceding calendar year of each licensed place of business, conducted by such licensee within
the state. Such report shall be made under oath and shall be in the form prescribed by the commissioner,
who shall make and publish annually an analysis and recapitulation of such reports.
History: 1971 c 398 s 3; 1985 c 248 s 70; 1986 c 444; 2005 c 19 s 1
53C.08 MOTOR VEHICLE RETAIL INSTALLMENT CONTRACT.
Subdivision 1. Terms and limitations. (a) Every retail installment contract shall be in writing, shall
contain all the agreements of the parties, shall be signed by the retail buyer and seller, and a copy signed by
the retail buyer shall be furnished to such retail buyer at the time the retail buyer executes the contract. The
copy signed by both the retail buyer and retail seller shall be provided to the retail buyer within seven days
after delivery of the vehicle. With respect to any contract executed prior to August 1, 1996, which has not
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been paid in full by the retail buyer, the retail seller shall provide such retail buyer a copy signed by both
the retail buyer and retail seller within 120 days after August 1, 1996.
(b) No provisions for confession of judgment or power of attorney therefor contained in any retail
installment contract or contained in a separate agreement relating thereto, shall be valid or enforceable.
(c) The holder of a precomputed retail installment contract may, if the contract so provides, collect a
delinquency and collection charge on each installment in arrears for a period not less than ten days in an
amount not in excess of five percent of each installment or $5, whichever is greater. In addition to such
delinquency and collection charge, the retail installment contract, whether interest-bearing or precomputed,
may provide for the payment of attorneys' fees not exceeding 15 percent of the amount due and payable
under such contract where such contract is referred to an attorney not a salaried employee of the holder of
the contract for collection plus the court costs.
(d) Unless written notice has been given to the retail buyer of actual or intended assignment of a retail
installment contract, payment thereunder or tender thereof made by the retail buyer to the last known holder
of such contract shall be binding upon all subsequent holders or assignees.
(e) Upon written request from the retail buyer, the holder of the retail installment contract shall give or
forward to the retail buyer a written statement of the dates and amounts of payments and the total amount
unpaid under such contract. A retail buyer shall be given a written receipt for any payment when made in
cash.
Subd. 1a. Disclosures required. Prior to the execution of a retail installment contract, the seller shall
provide to a buyer, and obtain the buyer's signature on, a written disclosure that sets forth the following
information:
(1) a description and the total price of all items sold in the following categories if the contract includes
a charge for the item:
(i) a service contract;
(ii) an insurance product;
(iii) a debt cancellation agreement;
(iv) a theft deterrent device; or
(v) a surface protection product;
(2) whether a GPS starter interrupt device is installed on the motor vehicle, regardless of whether the
contract includes a charge for the GPS starter interrupt device;
(3) the amount that would be calculated under the contract as the regular installment payment if charges
for the items referenced under clause (1) are not included in the contract;
(4) the amount that would be calculated under the contract as the regular installment payment if charges
for the items referenced under clause (1) are included in the contract; and
(5) the disclosures required under this subdivision must be in at least ten-point type and must be contained
in a single document that is separate from the retail installment contract and any other vehicle purchase
documents.
Subd. 2. Contents. The retail installment contract shall contain the following items:
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(1) the cash sale price of the motor vehicle which is the subject matter of the retail installment contract;
(2) the total amount of the retail buyer's down payment, whether made in money or goods, or partly in
money or partly in goods;
(3) the difference between clauses (1) and (2);
(4) the amount, if any, included in the transaction but not included in clause (1) to pay the balance of
an existing purchase money motor vehicle lien which exceeds the value of the trade-in amount, to discharge
an interest in an existing motor vehicle lease, for any insurance, specifying the types of coverage, taxes,
fees, and charges that actually are or will be paid to public officials or government agencies, including those
for perfecting, releasing, or satisfying a security interest, and any other amount to be financed that is related
to the transaction;
(5) principal balance, which is the sum of clauses (3) and (4);
(6) the amount of the finance charge;
(7) the total of payments payable by the retail buyer to the retail seller and the number of installment
payments required and the amount of each installment expressed in dollars or percentages, and date of each
payment necessary finally to pay the total of payments, which is the sum of clauses (5) and (6).
Provided, however, that said clauses (1) to (7) inclusive need not be stated in the terms, sequence, or order
set forth above. Provided further, that clauses (6) and (7) may be disclosed on the assumption that all
scheduled payments under the contract will be made when due.
In lieu of the above clauses, the retail seller may give the retail buyer disclosures which satisfy the
requirements of the federal Truth-In-Lending Act in effect as of the time of the contract, notwithstanding
whether or not that act applies to the transaction.
Subd. 3. Insurance. Every retail seller or sales finance company, if a charge for insurance on the motor
vehicle is included in a retail installment contract shall within 30 days after execution of the retail installment
contract send or cause to be sent to the retail buyer a policy or policies or certificate of insurance, which
insurance shall be written by a company authorized to do business in this state, clearly setting forth the
amount of the premium, the kind or kinds of insurance and the scope of the coverage and all the terms,
exceptions, limitations, restrictions and conditions of the contract or contracts of the insurance. The buyer
of a motor vehicle under a retail installment contract shall have the privilege of purchasing such insurance
from an agent or broker of the buyer's own selection and selecting an insurance company mutually acceptable
to the seller and the buyer; provided, however, that the inclusion of the cost of the insurance premium in the
retail installment contract when the buyer selects the agent, broker or company, shall be optional with the
seller.
Subd. 4. Contract transferability. Any sales finance company hereunder may purchase or acquire from
any retail seller any retail installment contract on such terms and conditions as may be mutually agreed upon
between them.
Subd. 5. Proof of delivery. An acknowledgment by the retail buyer of the delivery of any such copy or
notice as required in subdivision 1 contained in the body of the statement or contract shall be conclusive
proof of delivery in any action or proceeding by or against any assignee of a retail installment contract.
History: 1957 c 266 s 6; 1965 c 812 s 26; 1986 c 444; 1987 c 349 art 2 s 10; 1989 c 341 art 2 s 4; 1996
c 414 art 1 s 33; 1999 c 151 s 41; 2003 c 128 art 14 s 3; 2005 c 19 s 1; 2007 c 99 s 4; 2023 c 57 art 4 s 3
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53C.083 CONSUMER REPORT DISCLOSURE.
(a) When a consumer report from a consumer reporting agency has been obtained by a lender or retail
seller for use in connection with an application for credit initiated by a buyer for the purchase or lease of a
motor vehicle:
(1) the lender shall provide to the retail seller, upon written request of the buyer, and unless required by
federal law to provide the adverse action notice, prior to the sale or lease of the motor vehicle, the name of
each credit reporting agency providing a consumer report that was obtained and used by the lender;
(2) the retail seller shall provide, prior to the sale or lease of the motor vehicle the following notice in
at least ten-point boldface type on a document separate from the sale or lease contract, which must also
include the name, address, and telephone number of four principal consumer reporting agencies:
"NOTICE TO MOTOR VEHICLE CREDIT APPLICANT
A consumer report from a consumer reporting agency was used in connection with your application to
finance the acquisition of a motor vehicle. Consumer reports include data about your credit history and
payment patterns. Consumer reports are important because they are used in determining whether to extend
credit and may be used to determine the annual percentage rate you may be offered.
If you have questions about your consumer report, you are entitled to know the name, address, and
telephone number of the consumer reporting agency that provided the consumer report used to evaluate your
loan application. You may ask the dealer for this information. You may then contact the consumer reporting
agency at the address and telephone number provided. You are entitled under federal law to a free copy
annually of your consumer report by calling 1-877-322-8228 or visiting annualcreditreport.com"; and
(3) upon written request of the buyer, the retail seller shall obtain from the lender the consumer reporting
agency information specified in clause (1) and shall provide that information to the buyer.
(b) This section does not require a dealer to provide more than one disclosure for each purchase or lease
transaction. For purposes of this section, "consumer report" and "consumer reporting agency" have the
meanings given in section 13C.001.
History: 2007 c 99 s 5
53C.09 FINANCE CHARGE ON INSTALLMENT CONTRACT FOR VEHICLE OR
MANUFACTURED HOME.
Subdivision 1. Finance charge provisions, computation. (a) The finance charge authorized by sections
53C.01 to 53C.14 in a retail installment sale may not exceed the following simple interest annual percentage
rates:
Class 1. Any motor vehicle designated by the manufacturer by a year model of the same or not more
than one year prior to the year in which the sale is made - 18 percent per year.
Class 2. Any motor vehicle designated by the manufacturer by a year model of two or three years prior
to the year in which the sale is made - 19.75 percent per year.
Class 3. Any motor vehicle not in Class 1 or Class 2 - 23.25 percent per year.
(b) The finance charge must be computed on the principal balance outstanding from time to time. The
beginning principal balance must be as originally determined under section 53C.08.
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(c) Retail installment contracts may be interest-bearing or precomputed, and fixed-rate or variable rate.
For precomputed retail installment contracts, the finance charge may be calculated in advance on the
assumption that all scheduled payments will be made when due and the effect of prepayment in full is
governed by section 53C.10.
(d) To compute time for the purpose of calculating interest under this section and section 53C.10, a day
may be considered 1/30 of a month when calculation is made for a fraction of a calendar month. A year is
12 calendar months. A calendar month is that period from a given date in one month to the same numbered
date in the following month, and if there is no same-numbered date, to the last day of the following month.
When a period of time includes a whole month and a fraction of a month, the fraction of a month is considered
to follow the whole month. In the alternative, for interest-bearing retail installment contracts, a retail seller
may charge finance charges not to exceed 1/365th of the simple interest annual percentage rate permitted
in this section for each actual day elapsed from the date of the retail installment contract through and including
the date of payment in full.
(e) The finance charge is inclusive of all charges incident to investigating and making the contract, and
for the extension of the credit provided for in the contract and no fee, commission, expense, or other charge
whatsoever may be taken, received, reserved, or contracted for except taxes, fees, and charges that actually
are or will be paid to public officials or government agencies for determining the existence of or for perfecting,
releasing, or satisfying a security interest, and except as provided in sections 53C.01 to 53C.14.
Subd. 2. Prompt crediting of payments. (a) A contract holder shall credit a payment to the customer's
account as of the date of receipt except when a delay in crediting does not result in a finance or other charge
or except as provided in paragraph (b).
(b) If a retail installment contract or other instructions specify requirements for the consumer to follow
in making payments, but the contract holder accepts a payment that does not conform to the requirements,
the contract holder shall credit the payment within five days of receipt.
(c) If a contract holder fails to credit a payment, as required by paragraphs (a) and (b), in time to avoid
the imposition of finance or other charges, the contract holder shall adjust the consumer's account so that
the charges imposed are credited to the consumer's account promptly.
Subd. 3. Manufactured homes. A sale of a manufactured home made after July 31, 1983, is governed
by the provisions of subdivision 1 for purposes of determining the lawful finance charge rate, except that
the maximum finance charge for a class I manufactured home may not exceed 14.5 percent per year. A retail
installment sale of a manufactured home that imposes a time price differential rate that is greater than the
rate permitted by this subdivision is lawful and enforceable in accordance with its terms until the indebtedness
is fully satisfied if the rate was lawful when the sale was made.
Subd. 4. Other law may apply. In lieu of this section and sections 53C.01, subdivisions 2, 4, and 13;
53C.08; 53C.10; and 53C.11, a retail seller may proceed under section 47.59 relating to credit sales made
by a third party. In cases where the retail seller proceeds under section 47.59, the remaining provisions of
sections 53C.01 to 53C.14 apply notwithstanding section 47.59.
History: 1957 c 266 s 7; 1980 c 451 s 1; 1980 c 599 s 5; 1981 c 365 s 9; 1983 c 250 s 29; 1983 c 350
s 1; 1985 c 107 s 1,2; 1987 c 349 art 2 s 11,12; 1989 c 217 s 20; 1996 c 414 art 2 s 11; 2000 c 427 s 18;
2005 c 19 s 1
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53C.10 VEHICLE INSTALLMENT CONTRACT PREPAYMENT, REFUND CREDITS,
ALLOWANCE.
Subdivision 1. Prepayment in full. (a) Notwithstanding the provisions of any retail installment contract
to the contrary, any retail buyer may pay in full at any time before maturity the debt of any retail installment
contract without penalty. In paying a precomputed retail installment contract in full, the retail buyer shall
receive a refund credit thereon for such anticipation of payments. For contracts with substantially equal
scheduled monthly payments remaining after the date of prepayment in full, the refund must be calculated
for all fully unexpired monthly payment periods following the date of payment in full. For all other contracts,
the refund must be calculated as of the date in the month following prepayment which corresponds to the
original contract date. The refund shall be calculated according to the actuarial method, less an acquisition
cost of $15 which may be deducted from the refund so calculated.
(b) Where the amount of the credit for anticipation of payment is less than $1, no refund need be made.
(c) The actuarial method means the method of allocating payments on a contract between the principal
amount and finance charge at the contract rate charged under section 53C.09, whereby a payment is applied
first to the accumulated finance charge and then to the unpaid principal balance based on the original terms
of the contract and based on the assumption that all payments are made on the due date as originally scheduled
or deferred.
Subd. 2. Partial prepayment; notice. If a payment results in the prepayment of three or more installment
payments on a precomputed contract, the retail seller or assignee of the retail seller shall within 15 days of
receipt of the prepayment, deliver or mail to the retail buyer a notice in at least eight-point type. The notice
must contain the following statement:
"You have substantially prepaid the installment payments on your contract and may experience an
interest savings over the remaining term only if you refinance the balance within the next 30 days."
History: 1957 c 266 s 8; 1987 c 349 art 2 s 13; 1989 c 217 s 21; 1996 c 414 art 1 s 34; 2005 c 19 s 1
53C.11 EXTENSION OF VEHICLE INSTALLMENT CONTRACT SCHEDULES, PAYMENTS.
The holder of a precomputed retail installment contract may, upon written agreement with the retail
buyer, extend the scheduled due date, or defer the scheduled payment of all or part of any installment payment
or payments, or renew the balance of such contract. In any such case the holder may restate the amount of
the installments and the time schedule therefor, and collect as a refinance charge for such extension, deferment
or renewal, a flat service fee not to exceed $5 and a total additional charge not exceeding the simple interest
annual percentage rate under the original retail installment contract calculated on the respective descending
balances computed from the date of such extension, deferment or renewal.
History: 1957 c 266 s 9; 1976 c 86 s 2; 1987 c 349 art 2 s 14; 2005 c 19 s 1
53C.12 VEHICLE SALES FINANCE COMPANY VIOLATIONS; REMEDIES.
Subdivision 1. Criminal violations. Any person engaged in the business of a sales finance company in
this state without a license therefor as provided in sections 53C.01 to 53C.14 shall be guilty of a gross
misdemeanor and punished by a fine not exceeding $3,000, or by imprisonment for a period not to exceed
364 days, or by both such fine and imprisonment in the discretion of the court.
Subd. 2. Fraudulent violations. In case of a fraudulent violation of any provision of sections 53C.01
to 53C.14, the buyer shall have a right to recover from the person committing such violation, to set off or
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counterclaim in any action by such person to enforce such contract an amount as liquidated damages, the
whole of the contract due and payable, plus reasonable attorneys' fees.
Subd. 3. Other violations. In case of a failure to comply with any provision of sections 53C.01 to
53C.14, other than a fraudulent violation, the buyer shall have a right to recover from the person committing
such violation, to set off or counterclaim in any action by such person to enforce such contract an amount
as liquidated damages equal to three times the amount of any time price differential charged in excess of
the amount authorized by sections 53C.01 to 53C.14 or $50, whichever is greater, plus reasonable attorneys'
fees.
History: 1957 c 266 s 10; 1971 c 398 s 2; 1984 c 628 art 3 s 11; 2003 c 128 art 14 s 4; 2005 c 19 s 1;
2023 c 52 art 6 s 16
53C.13 SEVERABILITY CLAUSE.
If any provision of sections 53C.01 to 53C.14 or the application thereof to any person or circumstances
is held unconstitutional, the remainder of sections 53C.01 to 53C.14 and the application of such provision
to other persons or circumstances shall not be affected thereby.
History: 1957 c 266 s 11; 2005 c 19 s 1
53C.14 CITATION OF ACT.
Sections 53C.01 to 53C.14 may be cited as the "Motor Vehicle Retail Installment Sales Act."
History: 1957 c 266 s 12; 2005 c 19 s 1
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