Author Affiliation

Department of Social Work, Minnesota State University, Mankato

Document Type

Policy Advocacy Brief

Publication Date


Issue Statement/Executive Summary

Since 1999 the payday lending industry has been draining millions of dollars from Minnesotans struggling to keep a roof over their heads, put food on the table, and provide for other basic needs. For many people, repeat borrowing is the only via options to meet their monthly expenses. People who use this short-term loan option often fall into a debt trap because of steep interest rates that make it nearly impossible pay off the original and subsequent loans. Predatory marketing and lack of available banking solutions force marginalized groups into a cycle of debt. Minnesota needs to invest in fair lending practices by implementing interest rate caps and investing in solutions that eliminate the cycle of debt.


Social Work

Included in

Social Work Commons



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