ST. PAUL, Minn. (WCCO) — Efforts are under way to crack down on the types of loans that offer quick cash, but exorbitant interest rates.
Sen. Al Franken, D-Minnesota, spoke out against “payday” loans and other high-interest loans Saturday. The senator was in St. Paul to meet with financial advocates.
Some of the loans being targeted require borrowers to pay an interest rate of more than 200 percent, and many of the borrowers are low-income.
The Consumer Financial Protection Bureau is considering new rules for the industry.
“They will be issuing some rules and there will be comments on those rules,” Sen. Franken said. “This creates a lot of hardships — sometimes suffering — and we heard a lot of testimony about that today.”
Senator Franken was also at Anoka Technical College Saturday. He welcomed home more than 200 Minnesota National Guard troops returning from operations in Iraq and Kuwait.