Cause and effect
October 25, 2010 | Montana | Comments (0)From the story:
Many lenders say a 36% cap on short-term, deferred deposit loans will put them out of business. Voters won’t decide the issue until November 2, but some stores in Missoula have already closed.
Former owner of Golden Title, Eric Steingruber, closed the doors to his payday lending business on the corner of Brooks and Stephens Avenue this summer. He blames the end of his store on I-164. He believes the measure will pass and said there was no way he could continue lend money with a 36% interest rate cap.
Steingruber isn’t alone. At least two other payday loan businesses in the same area have closed in the last six months. Many stores are still open, but another lender said some are cutting back on loans.
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