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 October 07, 2015 – 8:35 PM Out-of-state payday lenders will need to follow Minnesota’s lender that is strict for online loans, their state Supreme Court ruled Wednesday. The sides that are ruling Attorney General Lori Swanson, whom filed suit against Integrity Advance, LLC in Delaware last year. The organization made 1,269 payday advances to Minnesota borrowers at annual interest levels all the way to 1,369 per cent. In 2013, an area court figured the organization violated Minnesota’s payday lending statutes “many thousands of that time period” and awarded $7 million in statutory damages and civil penalties to your state. The business appealed towards the Supreme Court, arguing that their state payday lending legislation 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 these lenders that are online they need to adhere to state legislation, exactly like other “bricks and mortar” lenders must, ” Swanson said.