During a news conference at the Minnesota State Capitol, Governor Mark Dayton today urged the Legislature to pass stronger consumer protections for Minnesotans who take out payday loans.
The Minnesota House of Representatives recently passed a bill (HF2293) that would: 1) eliminate a loophole that allows some payday lenders to charge interest rates of as much as 700 percent; 2) require payday lenders to first verify that a borrower has the ability to repay a loan; and 3) limit the number of payday loans a lender can issue to a consumer during the course of a year.
During this morning's news conference, Governor Dayton made the following statement.
"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. 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. And that's what it really comes down to."