HF 290 (companion bill: SF 1635) is intended to decrease the predatory lending practices associated with short-term consumer small loans (aka payday loans). Such predatory practices disproportionately target lower income, low credit score, and other struggling persons.
Suburban homeowners earning more than $80,000 a year never personally experience getting payday loans. The truth is, these borrowers are vulnerable, and lenders cravenly profit off that vulnerability, making their customers and their communities poorer.
I was asked by a political consultant to sign a pre-written letter opposing the bill on mathematical grounds. Basically, a $200 payday loan, to be paid back after 25 days as $210 (A $10 fee), would become illegal, as that works out to a greater than 60% annualized rate of interest.
But I decided to first read the bill myself.
It’s a mess. Wordy, complicated, incomprehensible in its totality, and likely unenforceable in the practical. I doubt it will solve the actual problem. It will just burden the lenders without helping the borrowers.
We would get better results pursuing efforts to educate all Minnesotans about personal finance and money management, and incentivizing community organizations to assist people with true short term emergency needs.
Please encourage your legislators (Sen John Hoffman and Rep. Zack Stephenson) to oppose these bills now that they are done helping child rapists vote (yes, they did that), and also to support removing state taxes on Social Security income.
Jeffrey W Baumann
Coon Rapids
Editor’s Note: DFLers Sen. John Hoffman and Rep. Zack Stephenson, whose districts include Coon Rapids, both voted for the “Restore the Vote” measure that now allows any convicted felon to vote once they leave prison and are on probation.
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Keep it Clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
PLEASE TURN OFF YOUR CAPS LOCK.
Don't Threaten. Threats of harming another person will not be tolerated.
Be Truthful. Don't knowingly lie about anyone or anything.
Be Nice. No racism, sexism or any sort of -ism that is degrading to another person.
Be Proactive. Use the 'Report' link on each comment to let us know of abusive posts.
Share with Us. We'd love to hear eyewitness accounts, the history behind an article.