Friday, October 29, 2010
Voters in the Big Sky Country will be voting this coming Tuesday whether to put a cap on the interest rates charged by "nontraditional" lenders like payday and auto-title loan companies. On the Montana ballot is an initiative that would cap the annual interest rate at 36%. An unsecured two-week $100 loan -- which now might carry a $15 charge -- will now have a maximum charge of $1.38. Assuming someone is willing to lend money at that rate.
The bill is expected to pass.