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Full-Text Articles in Social and Behavioral Sciences
Reforming Predatory Payday Loan Practices In Minnesota, Michelle Dammann, Neida Juantos, Wendy Tougas
Reforming Predatory Payday Loan Practices In Minnesota, Michelle Dammann, Neida Juantos, Wendy Tougas
Master of Social Work Student Policy Advocacy Briefs
Since 1999 the payday lending industry has been draining millions of dollars from Minnesotans struggling to keep a roof over their heads, put food on the table, and provide for other basic needs. For many people, repeat borrowing is the only via options to meet their monthly expenses. People who use this short-term loan option often fall into a debt trap because of steep interest rates that make it nearly impossible pay off the original and subsequent loans. Predatory marketing and lack of available banking solutions force marginalized groups into a cycle of debt. Minnesota needs to invest in fair …
Payday Lending: Reforming This Predatory Practice In Minnesota, Courtney Colton, Karmy Luker, Addy Haarstad-Mead, Sarah Turpen
Payday Lending: Reforming This Predatory Practice In Minnesota, Courtney Colton, Karmy Luker, Addy Haarstad-Mead, Sarah Turpen
Master of Social Work Student Policy Advocacy Briefs
Payday lending is a service that was intended to provide emergency financial relief to those who cannot afford an unexpected expense. However, 7 out of 10 borrowers use loans to cover monthly living expenses such as rent, utilities, and maintaining food security. With steep annual percentage rates averaging 391% and subsequent repeat borrowing, communities targeted by predatory lending companies fall deeper into the cycle of debt. Minnesota must reform their policies surrounding payday lending implementing legislative changes to protect Minnesotans who rely on payday loans and invest in long-term solutions that eliminate the need for a payday loan.