A bill to protect Minnesota borrowers from payday lenders, backed by Gov. Mark Dayton, did not win final approval from state lawmakers by the end of their session on May 16. The Senate voted 37 to 25 to forward the measure to the House, but the session concluded before lawmakers could develop a common proposal. Supporters of the proposal now must wait until next year.
The measure, sponsored by Sen. Jeff Hayden (DFL-Minneapolis), would have capped the loan limit for borrowers at 10 advances per year. Lenders also would have had to check to make sure the borrower was not already overextended. Additionally, they would have had to verify borrowers' military status, capping the annual percentage rate at 36 percent for enlisted persons.