In Clay County, Moorhead City Councilwoman Heidi Durand says it’s certainly time to STOP allowing payday loans with triple-digit interest rates.
She asked the city’s Human Rights Commission Wednesday, Feb. 19, to support state legislation that would severely reduce interest rates or to back a possible city plan to limit rates.
Durand said the “working poor or the most financially strapped or vulnerable” are taking out millions of dollars of such loans in Clay County, adding up to hundreds of thousands of dollars in interest payments and fees removed from the local economy.
Barry Amundson, The Forum
We agree. For this reason, our executive director, Sara Nelson-Pallmeyer, joined Durand in calling for an effective 36% interest rate cap.
As Durand works on the issue, she said there is an option for borrowers who want immediate help. The Exodus Lending nonprofit in St. Paul works statewide, pays off loan debt directly to lenders and works out a repayment plan for up to 12 months with no fees or interest.
Barry Amundson, The Forum
Meanwhile, do you think 36% is too high? Because in Clay County, Minnesota, the average interest rate on a payday loan in 2018 was 205%!
If you need help with payday loans, contact us online or at 612-615-0067. Likewise, you can also contact Moorhead City Councilwoman Heidi Durand for more information at 701-541-2684.
To sum up, read about the payday lending crisis in Moorhead and how we help Minnesotans in InForum.