Minnesota legislators to try again on payday loan reforms

Minnesota lawmakers are expected to introduce legislation next year to curb payday lending, but finding a fix won’t be easy.

Legislators previously proposed limiting to four the number of payday loans consumers can take out, but the effort failed after Payday America, the largest such lender in Minnesota, spent more than $300,000 to kill the bill.

Payday lenders also opposed efforts to cap interest rates, arguing that rate and loan caps would wipe them out entirely. The state Commerce Department shows the average annual interest rate on these types of loans exceeded 260 percent last year. The average customer takes out nearly 10 such loans a year.

http://www.startribune.com/minnesota-legislators-to-try-again-on-payday-loan-reforms/321936171/