Keeping Minnesota Payday Laws in Place

Minnesota is a state that has quite a few payday loan laws which greatly restrict its business.  So much that in fact there are very little payday lenders still able to operate.  However, there has been some momentum to try to keep the payday loan industry alive.  Not all people agree with keeping payday lending in the state, especially Glenn Grothman.  Grothman states that he does not see any negative side to not having payday lending in the state.  Many people agree with this standpoint because payday lending companies would take advantage of lower income households and run them into an impossible debt, that is extremely hard to walk away from.

Basically, the industry of payday lending does no exist in Minnesota.  The laws and restrictions on payday lending companies are quite sensible and protect the borrower so that poor payday lending practices are unable to continue.  Nevertheless, there are quite a few of lobbies who are willing to go the extra length (and cost) to fight for payday lending and to ease up on the tight leash that the legislature currently holds over the payday lending industry.

Payday lending companies cannot hand out loans that amount to more than $1500.  The governor at the time, Jim Doyle, banned any loans that were secured by putting up their vehicle titles.  The battle for payday loans will continue but the state laws seem to be firmly in place which mean there is no likely return of the payday lending industry to Minnesota.