Minnesota's law is not a flat out 36% rate cap, but by putting strict limits on payday loans with rates between 36% and 50%, it could drastically reduce the product's availability.
The law will "disrupt the predatory business model" of payday lenders so that they stop "creating long-term debt traps for consumers," said Yasmin Farahi, deputy director of state policy at the Center for Responsible Lending.
