What predatory loan products are out there?
Minnesotans are vulnerable to a host of different predatory lending products offered within their community, state, and country that exploit individuals and impose financial hardships. Tactics include high interest rates and fees, short repayment terms, lack of transparency, loan flipping, and more all of which trap borrowers in cycles of debt. While Minnesota has some restrictions on loans, payday, pawn, auto title, and online installment loans all make an impact on our neighbors.
In Minnesota, a typical payday loan is $365 and carries an APR of 200%, and is re-borrowed an average of nine times in a year.
Payday loans don’t solve financial pressures; they make them worse.
