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Valparaiso Univ. Law School

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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.

FGS

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