Leaders in Minnesota are trying again to get rid of payday loans, saying they're a trap. Previously they tried to put a limit on how many loans people can take out. They wanted to limit people to only take out four, but that didn't go through.
The biggest concern is that there's no restriction how much interest the lenders can charge.
We spoke to a local woman who has used pay day loans in the past. Alyssa Trask says for her and her husband they were a vicious cycle.
"His next paycheck was just enough just enough to pay off the loan and the interest, and so then we had no money for bills or living expenses. So we had to get another loan, and it was like the same thing over and over again. And it was like this cycle for like 6 months and it was really scary, especially living paycheck to pay check," says Trask.
We contacted local payday loan providers; no one wanted to talk with us on camera. However, one woman said some of their customers would have nowhere else to turn if they were no longer able to get a payday loan.