We made the cut…unfortunately
July 30, 2010 | Montana, Rate Caps, State legislation, states | Comments (4)
More from the lovely state of Montana on Initiative 164 as November 2 approaches.
For all the voters out there, you should know that a 36% rate cap on a two-week payday loan would result in the elimination of an affordable credit option for consumers. At a 36% APR, the total fee charged on a $100, two-week advance would be $1.38. Payday lenders could not cover the cost of originating a loan, let alone meeting employee payroll and benefits and other fixed business expenses. Just saying…
See full article in the Great Falls Tribune here.
Comments»
Frustrating. Thanks to a generally one-sided media bias and endless “predatory” drumbeat on the payday lending message, these initiatives don’t end well for our industry.
Hm…another win for the wall street banks and loss for the main street.
Would you lend a stranger $100 for a week, for 69ยข of interest?
Didn’t think so.
The industry should be able to win these rate-cap referendums. I would suggest ads featuring a professor of economics explaining why it is foolish to judge a loan simply by its APR.