Payday loan rules encouraged
ST. PAUL - Minnesota Senators are awaiting a vote on new regulations for payday loans.
The House passed a bill that would reduce some loan interest rates, require that a lender make sure a person has the ability to repay a loan and limit the number of payday loans a lender can make to a person each year. Committee testimony indicated that some people get a new loan as soon as they pay off another one.
“The House has passed a very strong bill on payday lending, putting some limitations on what these lenders can do to vulnerable Minnesotans, both in terms of lowering the interest rates (and reducing) the number of loans they can make per month," Gov. Mark Dayton said. "I urge the Senate to put the House bill to a vote and see whether legislators of both parties are willing to stand up to protect the interests of the people of Minnesota, rather than the economic interests of the payday lenders.”