Montana Lawmakers Continue to Work on Payday Loan Laws

Posted On: September 20, 2010 at 8:13 a.m.

Filed Under: helena payday loan walking mall

In Helena, Montana, lawmakers are continuing, despite the obstacles and previous hurdles, to restrict payday lending to 36 percent interest rates. Of course, the payday loan industry has repeat argued that they cannot survive on that rate, based on the way these loans work.

“Undaunted by three legal challenges to Initiative 164, supporters of capping the maximum allowable interest rate on title and payday loans at 36 percent held a press conference Sept. 2 on the downtown Walking Mall to kick off the campaign to get it passed. [[ads]]

The group included two state senators, representatives of the public schools, AARP, Montana Human Rights Network and the Montana Community Foundation, an attorney, and two small-business owners.

“Senator Lewis and I don’t agree on everything, but we do agree on this. Four-hundred percent (interest) is too high,” said state Sen. Christine Kaufmann, D-Helena.

State Sen. Dave Lewis, R-Helena, said he “hesitated a bit” when first approached to support I-164. “As a Republican, I don’t usually support more regulation, but this is the right thing to do,” he said.

Helena Superintendent of Schools Bruce Messinger said he has seen the effects of high-interest loans on families and youth and that he believes passage of I-164 “will have a positive impact on these families.”

Claudia Clifford, AARP advocacy director, Kim Abbott, program director for the Montana Human Rights Network, Mary Craigle, board member of the Montana Community Foundation, and attorney Ron Waterman echoed similar sentiments. A supportive statement was read on behalf of Shalon Hastings, owner of Taco del Sol, who wrote that she had seen her employees “get in trouble with predatory lenders” (http://www.queencitynews.com/modules.php?op=modload&name=News&file=article&sid=12005&mode=flat&order=0&thold=0). The arguments, despite these lawmakers’ opinions have been made repeatedly clear. 400 percent interest rates are taken out of context. The industry won’t survive on rate caps at 36 percent.