Home Commerce Committee Approves New Tools to deal with Predatory Payday Lending

Home Commerce Committee Approves New Tools to deal with Predatory Payday Lending

St. Paul, MN- Today, the home Commerce Committee authorized bipartisan legislation to deal with a harmful period of financial obligation brought on by predatory lending that is payday. Rep. Jim Davnie (DFL-Minneapolis) provided HF 1501 , which may cap the attention price and yearly charge on payday advances at 36%. Minnesota Attorney General Ellison testified meant for the legislation.

“HF 1501 is really a wise practice solution to predatory financing inside our state,” stated Rep. Davnie. “Hardworking Minnesotans deserve and need usage of safe and accountable resources, perhaps maybe not a method made to just take them in and milk their bank reports within the term that is long making them worse off and without funds to pay for fundamental cost of living. It’s high time Minnesota joins those states that place reasonable restrictions in the prices of loans for struggling customers.”

At a general public hearing, a previous payday debtor, advocates, and professionals described the monetary destruction brought on by loans holding 200% to 300per cent yearly interest levels with unaffordable terms that induce a period of financial obligation. (more…)

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