Bemidji City Council will hear a presentation by Minnesotans for Fair Lending. According to city documents, the group is calling on the council to enact and pass a regulation that would protect consumers from the high interest rates on payday loans.
According to the group’s data, more than $ 1 million were borrowed from residents of Bemidji in this type of high-yield small-dollar loan in the past year.
A similar ordinance in Moorhead requires these types of lenders to obtain a license from the city and includes language to limit interest rates, limit the number of resumption cycles, and set some terms on the loans.
It is expected that the Council will also discuss a withdrawal during this working session.