Dayton calls for stronger regulations for payday lenders

Gov. Mark Dayton is calling on the Minnesota Senate to pass stronger regulations for companies that provide short-term loans at much higher interested rates than banks.

The House passed a bill last month that would set new regulations for such companies.

Dayton said the Senate bill is much weaker and might not receive a vote. With a week left before the Legislature adjourns, the governor said Monday that the measure is a priority that he doesn't want overlooked.

"I want to urge the Senate leaders to put the House bill to a vote in the Senate, and see whether legislators of both parties are willing to stand up to the protect the interests of the people of Minnesota, rather than the economic interests of the payday lenders," Dayton said. "That's what it really comes down to."

The House bill requires lenders to check the credit history of their customers. It also attempts to stop the cycle of borrowers repaying one loan with another, by allowing only four loans per customer within a year.