ST. PAUL, Minn. — On Tuesday, Senator Judy Seeberger’s (DFL-Afton) bill that would regulate the interest rates of loans targeted at borrowers in need of money in between paychecks received its first hearing in the Commerce Committee. In response, Senator Seeberger released the following statement:
“On the outside, a payday loan looks like a great opportunity for Minnesotans who may need some extra help making ends meet between paychecks. But when there is no cap on the amount of interest a lender can charge financially vulnerable Minnesotans, this model is a slippery slope to exploitation. My bill to regulate the amount of interest a lender can charge would help put a stop to these predatory practices so Minnesota’s families struggling to make ends meet do not get cornered into financial situations where they are paying interest rates upwards of 200% to payday lenders.”
SF 1635 passed the Commerce Committee and is headed to the Senate floor for a final vote.