House Commerce Committee Approves Brand New Tools to Addre Predatory Payday Lending
“HF 1501 is really a commonsense solution to predatory financing inside our state,” said Rep. Davnie. “Hardworking Minnesotans deserve and need acce to safe and accountable resources, not a method made to simply just 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 living expenses. It’s high time Minnesota joins those states that place reasonable limitations in the prices 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 as well as the District of Columbia limit interest that is annual payday advances at 36% or reduced to disrupt this period of financial obligation. Congre paed the same 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 therefore significant so it impacted army readine.