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Moorhead councilwoman leads fee to avoid ‘vicious cycle’ of payday advances

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Moorhead councilwoman leads fee to avoid ‘vicious cycle’ of payday advances

MOORHEAD — Moorhead City Councilwoman Heidi Durand says it is 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 aid state legislation that could seriously reduce rates of interest or to back a city that is possible to restrict prices.

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

Numerous borrowers, she stated, can not get a 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 loan that is two-week of380, for instance, to cost just as much as $40, a 275% interest. But, Durand stated some wind up much higher, noting that the 3 payday loan lenders that are largest in Minnesota, which account fully for 75% of such loans, run under a commercial and thrift loophole in order to prevent that limit.Read More »Moorhead councilwoman leads fee to avoid ‘vicious cycle’ of payday advances