(St. Paul, MN)  --  Minnesota Attorney General Lori Swanson is suing three online payday loan companies for not complying with state law.  A payday loan is a short-term, high-interest loan usually under 500-dollars targeted at borrowers who need money between paychecks.  Swanson says these Internet lenders are charging outrageous interest rates without a Minnesota license.  She adds that it's not unusual for a borrower to owe more than the original loan amount in interest rates and finance charges.  Eastside Lenders, Global Payday Loan and Jelly Roll Financial are accused of charging a 782-percent interest rate on two-week loans.
2010 Metro News