Home Commerce Committee Approves New Tools to handle Predatory Payday Lending

Home Commerce Committee Approves New Tools to handle Predatory Payday Lending

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

“HF 1501 is just a sense that is common to predatory financing inside our state,” stated Rep. Davnie. “Hardworking Minnesotans deserve and need usage of safe and accountable resources, maybe perhaps perhaps not a method built to just just simply take them in and milk their bank records on the term that is long making them worse off and without funds to pay for fundamental cost of living. It’s time that is high joins those states that place reasonable restrictions from the rates of loans for struggling customers.”

A former payday borrower, advocates, and experts described the financial destruction caused by loans carrying 200% to 300% annual interest rates with unaffordable terms that create a cycle of debt at a public hearing. Sixteen states and the District of Columbia limit interest that is annual payday advances at 36% or reduced to disrupt this cycle of financial obligation. Congress passed an identical 36% limit on loans to active-duty military during the urging of this Department of Defense, following the DoD reported monetary damage from payday advances so significant so it impacted readiness that is military. Continue reading Home Commerce Committee Approves New Tools to handle Predatory Payday Lending