BEMIDJI -- The organization Minnesotans for Fair Lending will present information about payday loan laws to the Bemidji City Council Monday.
According to documents with the council's agenda, payday loans are small-dollar, high-interest loans. They require payback on the borrower's next payday and typically carry triple-digit interest rates.
During the meeting, the organization will cite an ordinance passed by the city of Moorhead. The ordinance allows no more than two consumer short-term loans of $1,000 or less per person, per calendar year.
Additionally, Moorhead sets a minimum repayment within 60 days of a loan's origination and lenders are not allowed to charge more than 33% annual interest on loans between $350 and $1,000. Lenders also can't charge additional fees for extension or increase the balance owned above the original amount.
No more than four consumer short-term loan businesses are allowed within Moorhead.
