The Minnesota Department of Commerce (the Department) has revised its position on who is required to be licensed as a sales finance company under the Minnesota Motor Vehicle Retail Installment Sales Act. (“Sales finance company” is defined, in part, as “a person engaged … in the business of purchasing retail installment contracts in [Minnesota] from one or more retail sellers.”) In the context of indirect auto finance, the Department now considers a transaction between an in-state auto dealer and an out-of-state sales finance company to be an in-state transaction that requires the sales finance company to be licensed. The Department is expected to make a formal announcement on its new position, and is also expected to provide a grace period of at least 90 days during which affected sales finance companies should apply for a license.
For assistance with a Minnesota sales finance company license application (or any other license application), consider APPROVED.