Payday loan reform a hot topic
Montana is joining the ranks of states looking to impose an interest rate cap on payday advance loans. The state’s House Business and Labor Committee held a hearing today on a bill that would put a limit of 36 percent on payday loans.
Several states, including South Carolina and Virginia, have already passed payday lending laws. Many more are considering doing the same thing. There is no federal cap on interest rates for payday loans, except regarding military personnel, but it is rumored that some White House staff are considering creating a federal cap.
Making a case in Montana
Legislators admit that the payday lending business has created many jobs in Montana. Payday advance loan lenders let the committee know that if the interest rate cap is passed they would have to shut down their businesses. If the payday lending industry in Montana goes under, 500 to 600 Montanans will lose their jobs.
Shutting down payday loan stores would also leave residents with even fewer financial options. Bernie Harrington of Montana Financial Services Centers attended the hearing, and he defended payday loan users. ... click here to read the rest of the article titled "Montana Legislation Targets Payday Advance Loans"