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

Home Commerce Committee Approves Brand Brand 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 debt brought on by predatory lending that is payday. Rep. Jim Davnie (DFL-Minneapolis) offered HF 1501 , which will cap the attention price and yearly charge on pay day loans at 36%. Minnesota Attorney General Ellison testified to get the legislation.

“HF 1501 is just a good judgment solution to predatory financing inside our state,” stated Rep. Davnie. “Hardworking Minnesotans deserve and need usage of safe and accountable resources, maybe maybe not a method built to simply take them in and milk their bank records throughout the term that is long leaving them worse off and without funds to pay for fundamental bills. It’s time that is high joins those states that place reasonable restrictions regarding the prices of loans for struggling consumers.”

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.…