Dealers should watch for September updates to the Bankers System Retail Installment Contract, which include a late fee increase that took effect July 1.
The statutory minimum delinquency charge on Minnesota RICs has increased from $9.88 to $10.40. Minnesota Statute § 47.59, subdivision 6(a)(4), authorizes a delinquency charge of 5% of the payment amount or the statutory minimum, whichever is greater, when a payment isn’t paid in full within 10 days of its due date. $10.40 is a floor, not a cap — on larger payments, 5% can run higher, and a dealer may charge that amount instead.
The statute sets a ceiling on what may be charged, not a mandate on what must be charged. Whether a dealer’s contracts reflect $10.40, the prior $9.88 minimum, or no delinquency charge at all comes down to what the dealer’s lenders require — some lenders will only purchase paper that matches the current statutory minimum.
Reynolds & Reynolds, the forms partner MADA works with, will release an updated Bankers System Retail Installment Contract in September 2026 as a result of the late fee increase. The form will also include two additional substantive changes required under Minnesota law. Reynolds & Reynolds held the release until after the 2026 legislative session ended in late May, so it could account for all required changes in a single update.
According to Reynolds & Reynolds, dealers may use the revised forms before the September effective date, but only if their lender is willing to accept them early. Check with your lenders before switching over.
Paper forms. MADA will have the revised forms available for purchase beginning in early September.
Electronic forms. Dealers who generate RICs electronically through their DMS must contact their DMS provider directly to obtain the updated form version. MADA does not distribute electronic form updates.
