Minnesota Governor Signs Popular Interest Rate Cap on Payday Loans
DURHAM, NC – Governor Tim Walz signed into law last week a measure capping annual interest rates on payday loans at 36% in Minnesota, with strict limitations on loans bearing annual rates from 37% to 50%. Payday loans above 50% will be outlawed. The measure is expected to stop predatory payday lending as Minnesotans know it, eliminating loans that carry average annual percentage rates of interest (APRs) of 220% that can create a cycle of long-term debt. Passage of the law, which takes effect January 1, 2024, continues a growing movement among the states to protect consumers from unscrupulous