ContractsProf Blog

Editor: Myanna Dellinger
University of South Dakota School of Law

Friday, October 29, 2010

Capping interest rates for "predatory" lenders

1908RandallCountyCourthouseCanyonTexas907TJnsn 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.


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