Minnesota Supreme Court upholds constitutionality of Minnesota’s payday financing legislation

Minnesota Supreme Court upholds constitutionality of Minnesota’s payday financing legislation

By David Chanen and Neal St. Anthony , celebrity Tribune 07, 2015 – 8:35 PM october

Out-of-state payday lenders will need to follow Minnesota’s lender that is strict for online loans, hawaii Supreme Court ruled Wednesday.

The governing sides with Attorney General Lori Swanson, whom filed suit against Integrity Advance, LLC in Delaware last year. The business made 1,269 pay day loans to Minnesota borrowers at yearly rates of interest as high as 1,369 %.

In 2013, an area court determined that the organization violated Minnesota’s lending online payday loans Ohio that is payday “many thousands of that time period” and awarded $7 million in statutory damages and civil penalties to your state. The organization appealed to your Supreme Court, arguing that their state payday lending law ended up being unconstitutional whenever used to online loan providers located in other states.

The court rejected that argument, holding that Minnesota’s payday lending law is constitutional in Wednesday’s opinion by Justice David Stras.

“Unlicensed Web payday loan providers charge astronomical rates of interest to cash-strapped Minnesota borrowers in contravention of our state payday financing regulations. Today’s ruling signals to those lenders that are online they need to adhere to state legislation, the same as other “bricks and mortar” lenders must,” Swanson said. Minnesota Supreme Court upholds constitutionality of Minnesota’s payday financing legislation 더보기