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Digital News Report – While many Americans are looking to April for a tax return, some may need to consider a payday loan to tide them over. The loans are a valuable resource for people with bad credit on the verge of late fees or other negative consequences.
Borrowers need to remember that there are fees and interest associated with this type of loan. Today Lori Swanson, the Minnesota Attorney General, filed lawsuits against three payday lenders for charging interest that exceeds the law.
Swanson said the fees grossly exceeded the state limits and failed to comply with the states licensing rules. She is known for going after fake charities and dishonest lenders. Even with this oversight, borrowers need to read their contracts before agreeing to the terms.
Although some states have considered banning this type of loan, it has proved to be a reliable source of non-secured loans for thousands of Americans. Since the loans are un-secured the lenders need to charge more in interest.
The business is booming right now despite the attacks by state and local governments. Besides Minnesota lawsuits have been filed in California, Illinois and West Virginia.
These are the lenders she is suing: Eastside Lenders of Delaware, Global Payday Loan of Utah and Jelly Roll Financial of Virginia.
By: Tina Brown