Out-of-state payday lenders will need to follow MinnesotaвЂ™s strict loan provider legislation for Web loans, their state Supreme Court ruled Wednesday.
The sides that are ruling Attorney General Lori Swanson, whom filed suit against Integrity Advance, LLC in Delaware last year. The organization made 1,269 pay day loans to Minnesota borrowers at annual rates of interest as much as 1,369 %.
In 2013, an area court determined that the business violated MinnesotaвЂ™s payday lending statutes вЂњmany thousands of that time periodвЂќ and awarded $7 million in statutory damages and civil charges towards the state. The business appealed towards the Supreme Court, arguing that their state payday lending legislation ended up being unconstitutional when used to online loan providers situated in other states.
In WednesdayвЂ™s opinion by Justice David Stras, the court rejected that argument, keeping that MinnesotaвЂ™s payday lending legislation is constitutional.