Durand stated the “working poor or perhaps the many financially strapped or susceptible” are taking right out huge amount of money of such loans in Clay County, including as much as thousands and thousands of dollars in interest re payments and charges taken off the regional economy.
Many borrowers, she stated, can not get that loan from another lender. Per capita, the county ranks second among the list of 24 in Minnesota which have a minumum of one pay day loan lender.
Ongoing state legislation enables a loan that is two-week of380, for instance, to cost just as much as $40, a 275% rate of interest. Nonetheless, Durand stated some wind up much greater, noting that the 3 payday loan lenders that are largest in Minnesota, which take into account 75% of these loans, run under a commercial and thrift loophole in order to avoid that limit. [Read more…]