By Meghan Olsen Biebighauser, MFL
As leaders in more cities are considering rate cap ordinances, this is a question we hear a lot. It’s a good one, and we definitely have thoughts. Here are some of the reasons why your city should implement a rate cap, even if there currently aren’t any payday lenders in your city.
By Juanita Reopelle, Bemidji
Mark Papke-Larson, in response to your letter to the editor, “A faithful response to payday loans” published Sept. 30. Thank you for highlighting unfair lending practices right here in Minnesota as well as the effect that these lending practices have on Beltrami County residents.
By Terry Hagensen, Turtle River
As a member of the group Minnesotans for Fair Lending, I have been made aware of the interest rates payday loan companies are charging their clients an interest rate as high as 203% APR. Impossibly high finance charges lead to repeat borrowing -- on average, customers are trapped into 10 loans per year.
By Pastor Mark Papke-Larson
Payday loans are small-dollar loans due on the borrower’s next payday. In Minnesota, the 2020 Minnesota Department of Commerce report showed that the average payday loan size is $380, and the cost of borrowing this amount for two weeks computes to an appalling 273% APR.
By Nancy Altmann
Payday lending is often advertised as “emergency relief,” but if you look at the data, there is nothing farther from the truth