Minnesota Supreme Court upholds constitutionality of Minnesota’s payday lending legislation

Minnesota Supreme Court upholds constitutionality of Minnesota’s payday lending legislation

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 ruling sides with Attorney General Lori Swanson, who filed suit against Integrity Advance, LLC in Delaware last year. The organization made 1,269 pay day loans to Minnesota borrowers at annual interest levels as much as 1,369 per cent.

In 2013, an area court determined that the business violated Minnesota’s lending that is payday “many thousands of that time period” and awarded $7 million in statutory damages and civil charges towards the state. The business appealed towards the Supreme Court, arguing that their state lending that is payday ended up being unconstitutional when applied 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 online payday lenders charge astronomical interest levels to cash-strapped Minnesota borrowers in contravention of y our state payday financing legislation.继续阅读