Minnesotans for Fair Lending to present at Bemidji City Council meeting tonight
At its Monday work session, the Bemidji City Council is scheduled to hear from the organization Minnesotans for Fair Lending regarding the state's payday loan regulations.
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.