House Commerce Committee Approves Brand New Tools to handle Predatory Payday Lending

House Commerce Committee Approves Brand New Tools to handle Predatory Payday Lending

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

“HF 1501 is a sense that is common to predatory financing inside our state,” said Rep. Davnie. “Hardworking Minnesotans deserve and need access to safe and responsible resources, maybe perhaps not a method made to just take them in and milk their bank reports throughout the term that is long leaving them worse off and without funds to pay for fundamental cost of living. It’s high time Minnesota joins those states that place reasonable limitations from the rates of loans for struggling customers.”

At a general public hearing, an old payday debtor, advocates, and professionals described the economic destruction brought on by loans holding 200% to 300per cent yearly interest levels with unaffordable terms that creates a cycle of financial obligation. Continue reading “House Commerce Committee Approves Brand New Tools to handle Predatory Payday Lending”