abc
QUICK LINKS:

Senate Approves Bill Aimed at Payday Lending

Created: 05/16/2014 6:36 PM KSTP.com
By: Cassie Hart

The Minnesota Senate has passed a bill that seeks to protect borrowers from falling further into debt to payday lenders.
    
The Friday vote was 37 to 25. The legislation goes next to the House.
    
Payday loans are short-term loans typically made without checking the borrower's credit or ability to pay. Instead, the lender gets the right to withdraw the money from the borrower's bank account the next time the borrower will have the money to pay it back. If the borrower can't, the lender lets the borrower pay the debt by taking out another short-term loan.
    
The measure sponsored by Minneapolis Democrat Sen. Jeff Hayden limits borrowers to 10 loans a year and requires lenders to check whether the borrower already is overextended with other payday loans.

(Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)
 

Photo: KSTP/File

Minneapolis/St. Paul

Overcast
66°
85° | 65°
  • Feels like: 66° F
  • Wind: S 8mph
  • Humidity: 96%
  • Mon Morning showers and thunderstorms
    79° | 58°
  • Tue Times of sun and clouds
    81° | 62°
  • Wed Morning showers and thunderstorms
    83° | 66°
  • Thu More sun than clouds
    84° | 65°

Video

KSTP NEWS