MINNEAPOLIS (AP) — The Minnesota Supreme Court has upheld the constitutionality of the state’s payday lending law involving out-of-state, online lenders.

The state sued Integrity Advance in 2011, saying the company violated the state lending law when making nearly 1,300 loans to borrowers in Minnesota at annual interest rates of up to 1,369 percent.

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A state district court in 2013 concluded that the company violated the Minnesota law thousands of times and awarded $7 million in statutory damages and civil penalties to the state.

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The company appealed to the state Supreme Court, arguing that the payday lending law was unconstitutional when applied to online lenders based in other states.

Some Internet payday lenders have tried dodging the Minnesota statute by claiming their loans are only subject to the laws of their home state or country.

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