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Taking on predatory lenders in Minnesota

by Dan Burns on August 17, 2016

predatory-lending-practices-how-to-avoid-them-12-638This article is well worth reading in full. There are ways to make things better, even when corporatists in both parties are being unhelpful, to say the least.
 

Even as guidelines against payday lending services stall out in the labyrinth of bureaucracy, local changemakers continue to provide relief for families caught up in debt traps–and fight to keep wealth within our communities and out of the hands of financial predators…
 
Payday loan services have been a staple on the public financial landscape since the 1980s. By definition, a payday loan is a small dollar loan, usually between $200 to $1,000, with an extraordinarily high interest rate that requires the borrower to pay back in full with their next paycheck, or risk even further financial penalties. The average annual percentage rate (APR) on payday loans is about 273 percent.
 
Shockingly, payday loans are still legal and in many states operate without regulation. Even in the face of overwhelming evidence as to the predatory and unjust nature of such loans, multiple efforts to impose national guidelines on payday loans since the 2008 recession have failed. Payday lenders even have both Minnesota DFL and Republican parties eating out of their hands.
(Twin Cities Daily Planet)

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