MN Senate: Support Payday Lending Reform

Urge your Senator to end debt traps in Minnesota!

The House has already passed a 36% interest rate cap on "payday loans" to help protect people in need. Now our Senators need to stand strong and keep this interest rate cap in the Omnibus Commerce bill.

The Problem

Payday loans are small-dollar, high-interest loans requiring full payback on the borrower’s next payday. They typically carry triple-digit annual interest rates, are due in full on a borrower’s next payday, require direct access to a borrower’s bank account, and are made with little or no regard for a borrower’s ability to repay the loan. Because of these features, borrowers often cannot both repay the payday loan and meet their other obligations without having to quickly re-borrow.

Church Teaching

Pope Francis has denounced usury as contrary to human dignity and as a “dramatic social ill” because it takes advantage of another person in desperate financial situations.

Usury, or the practice of lending money at exploitatively high-interest rates, has become increasingly widespread over the past decade as families struggle with economic insecurity.

Your Action

Your State Senator will debate and give a final vote on S.F. 2744. This bill would place a 36% cap on the total interest, finance charges, and processing fees that can be charged in connection with a payday loan. This percentage matches the short-term lending rate that can be charged to active-duty military personnel and their families. There is no reason why all Minnesotans should not have the same protection.

If you have...

One Minute: Send a message to your State Senator. Encourage them to support the short-term consumer loan reform language included in the Omnibus Commerce bill (S.F. 2744). This will ensure that difficult financial circumstances are not compounded by placing individuals and families in debt traps by placing a 36% cap on the total interest and fees that can be charged in connection with a payday loan.

Five Minutes: After sending a message, you will be prompted to call your senator. You will receive a phone call and when you answer, you will be connected to your senator. If he/she does not answer, leave a message. You can follow the script on your device. 

More Time: After making your calls, click on the video button to send a video and let your senator know why you support payday lending reforms.