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In a move to protect consumers from predatory lending practices, Minnesota officials announced new regulations on July 26, 2025, that will have a significant impact on debtors and creditors in the state.Under the new regulations, payday lenders will be required to conduct more thorough background checks on borrowers to ensure they have the ability to repay the loans. Lenders will also be prohibited from issuing more than one loan to the same borrower at a time, in an effort to prevent borrowers from falling into a cycle of debt.Additionally, debt collection agencies in Minnesota will be subject to stricter guidelines regarding the methods they can use to collect debts. The regulations will prohibit agencies from making harassing phone calls or using deceptive practices to coerce debtors into paying their debts."These new regulations are a crucial step in protecting Minnesota consumers from unscrupulous lending practices," said State Senator Jessica Thompson, who sponsored the legislation. "No one should have to deal with the stress and financial burden of predatory lending or aggressive debt collection tactics."The new regulations come as a response to a growing number of complaints from consumers who have been victims of predatory lending and aggressive debt collection practices. According to a recent report from the Consumer Financial Protection Bureau, Minnesota has seen a significant increase in complaints related to these issues in recent years.Consumer advocacy groups have praised the new regulations, saying they will help level the playing field between debtors and creditors and provide much-needed protections for vulnerable consumers."We are thrilled to see the state taking action to protect consumers from these harmful practices," said Sarah Jenkins, a spokesperson for the Minnesota Consumer Rights Coalition. "These regulations will help ensure that Minnesotans are treated fairly and respectfully when dealing with debt-related issues."The new regulations are set to go into effect on January 1, 2026. In the meantime, state officials are encouraging consumers who believe they have been victims of predatory lending or aggressive debt collection practices to report their experiences to the Minnesota Attorney General's office.