The Bemidji City Council will hear a presentation from Minnesotans for Fair Lending. According to city documents, the group is requesting the council to create and pass an ordinance that would protect consumers from the high-interest rates of payday loans.
According to the group’s data, more than $1 million dollars in these types of high-interest, small-dollar loans were taken out by Bemidji residents last year.
A similar ordinance in Moorhead requires these types of lenders to obtain a license from the city, and includes language to cap interest rates, limit the number of re-borrowing cycles, and mandates on some of the terms and conditions of the loans.
The council is also expected to discuss a retreat during this work session.
