Moorhead City Council Member Heidi Durand
MOORHEAD, MINN. (KFGO) – The Moorhead City Council is working on the adoption of a new law that would add restrictions on the two short-term loan businesses in the city.
Council member Heidi Durand said the proposed ordinance is directed at protecting those who end up in what she calls a “payday loan trap.” She said the restrictions are needed more than ever now because of the wide financial impact COVID-19 has had on many. She cited one example that Moorhead Public Service has reported 1,300 customers are two or more months behind in paying their bills.
Council member Chuck Hendrickson said options would be needed to help resolve the financial problems if the new ordinance is approved.
Nick Laid, co-owner of “Greenbacks Inc.,” a payday loan company in Moorhead, said if the proposed ordinance is approved, the restrictions would put businesses like his out of business and would not be beneficial for his clients. He compared it to being able to only use a credit card twice a year.
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