Moorhead councilwoman leads fee to avoid ‘vicious period’ of pay day loans

January 26, 2021

Moorhead councilwoman leads fee to avoid ‘vicious period’ of pay day loans

Moorhead City Councilwoman Heidi Durand says it is the right time to stop payday advances that typically charge triple-digit rates of interest.

She asked the town’s Human Rights Commission Wednesday, Feb. 19, to guide state legislation that could seriously reduce rates of interest or to back a city that is possible to restrict rates.

Durand stated the “working poor or perhaps the many financially strapped or susceptible” are taking out fully vast amounts of these loans in Clay County, including as much as thousands and thousands of bucks in interest re re re re payments and costs taken off the economy that is local.

Numerous borrowers, she said, can not get that loan from another institution that is financial. Per capita, the county ranks second among the list of 24 in Minnesota which have a minumum of one pay day loan lender.

Present state legislation permits a two-week loan of $380, for instance, to cost up to $40, a 275% rate of interest. Nevertheless, Durand said some wind up much greater, noting that the 3 largest pay day loan lenders in Minnesota, which account fully for 75% of these loans, run under a commercial and thrift loophole to prevent that limit. Lenders, she said, “have small or, i ought to state, positively no respect for the debtor’s power to repay the mortgage.”

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