вЂњHF 1501 is a commonsense solution to predatory financing within our state,вЂќ said Rep. Davnie. вЂњHardworking Minnesotans deserve and need usage of safe and accountable resources, perhaps not something built to simply simply just take them in and milk their bank reports on the term that is long making them worse off and without funds to pay for fundamental bills. ItвЂ™s high time Minnesota joins those states that put reasonable restrictions regarding the rates of loans for struggling customers.вЂќ
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. Congress passed an identical 36% limit on loans to active-duty military during the urging of this Department of Defense, following the DoD reported economic harm from pay day loans therefore significant so it impacted readiness that is military.