Montana won’t let payday loans die
Payday loans have helped many families weather financial storms and make it until the next paycheck. The impact they have upon general financial well-being has been significant, without any slippery slope toward ruinous conditions. Thankfully for the people of Montana, there are still politicians who know when to battle for what’s right – a 36 percent annual percentage rate cap simply won’t be allowed to waltz in and have its way.
According to AP reporter Matt Gouras, this unnecessarily strict regulation – House Bill 396 – hasn’t received the support that Democrats in the state had hoped. The House Business and Administration Committee locked in a 9-9 voting deadlock, which split evenly along Democratic and Republican lines. The House is similarly deadlocked on this important vote.
You can’t put people out of work right now
Previous incarnations of the bill as introduced by Rep. Bill Wilson asked for even more fee and term limit restrictions, but compromises were necessary, as the original version of the proposed legislation was considered to be much too unfriendly to the pay day loans industry.
Perhaps someone realized it would shut the businesses down and put people out of work? Whatever the case, supporters of the anti-payday loans bill aren’t ready to give up. A ballot initiative is planned for a more opportune time. Would that be when honest consumers and the officials who represent them aren’t paying attention? Not gonna happen.
I don’t get why many government regulators are attempting to cap ridiculous interest rates on payday loans. First of all, how in the heck will the payday loan industry sustain above waters if they succeed in their attempt? Secondly, this is clearly no time to be toying around. Our economy is obviously in desperate need of repair and something like this will only worsen the situation. We cannot afford to be losing any more jobs and businesses.
People should be free to make their own choices.
Good article.
Well, I am glad to see sense prevail in the Montana legislature, or at least enough of it to put a stop to something so ignorant as running an entire industry out of the state. Other states are feeling the pinch from the absence of financial choice, so it’s good that they decided not to follow in those foolhardy footsteps.