The nanny state
October 26, 2010 | Montana | Comments (0)The Helena Independent seems to believe in it.
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.
CRL sticks its nose in
October 25, 2010 | Montana | Comments (0)It should be no surprise to anyone that the Center for Responsible Lending is knee deep in the Montana ballot initiative.
The Montana test
October 22, 2010 | Montana | Comments (0)CreditLoan blogger has some interesting thoughts.
Support in Montana
October 18, 2010 | Montana, positive media coverage | Comments (0)From the Billings Gazette:
Whether a payday loan is a good deal or not depends on the borrower’s circumstances. Sure, it would be preferable to avoid paying a fee to borrow a couple hundred dollars for two weeks. But if the alternative is bank overdraft fees or late charges on credit card accounts, a payday loan may be the better choice.
There’s one more thing for voters to consider. With the regulations that Montana has already placed on payday lenders, 87 licensed businesses statewide employ more than 500 people. If I-164 becomes law, they probably will be out of work on Jan. 1.
Montana law already restricts payday lending to prevent the trap that I-164 purports to fix.
Another good question
October 12, 2010 | Montana | Comments (0)What does Wall Street Reform Mean for Mainstreet Montana? The Montana Attorney General is holding a forum tomorrow on this topic. The payday advance industry will have two representatives on a panel. Information is here.
Rate cap “misguided’
October 10, 2010 | Montana, positive media coverage | Comments (0)Great column in the Billings Gazette newspaper:
I recall that the documents I signed mentioned some seemingly outrageous annual percentage rate, but what did I care? All I knew was that I was paying $25 for a short-term loan of $200.
That seemed like a pretty good deal at the time, and it still does. It beat the alternative of scrounging a loan off a friend or relative. My improvidence was no secret, but it would have been more embarrassing to ask a friend for an interest-free loan than to pay a lender a few bucks for the same amount of money.
Will this type of thinking prevail on November 2?
Montana initiative stays on ballot
October 7, 2010 | Montana | Comments (0)For the record
October 7, 2010 | Montana, Nevada | Comments (0)The industry contributed over $42 million to Montana’s gross state product (GSP) in 2007. The payday lending industry supports over 700 jobs in Montana, including 369 people directly employed in 113 storefront locations.
- The industry indirectly created another 136 jobs in supplier industries.
- Payday loan store and supplier industry employees induced the creation of 227 jobs through the purchase of goods and services using earned wages.
- In Montana, the total labor income impact from the payday loan industry is $26 million:
- Through direct employment, payday loan stores contributed $13.3 million in labor income.
- Suppliers to the payday lending industry contributed $4.9 million in labor income as an indirect result of the revenues generated by the payday loan industry.
- $7.7 million was generated from the wages of payday loan store employees and supplier industries’ employees as they were spent in Montana’s economy.
- The payday lending industry helped to generate $11.3 million in federal, state and local taxes in 2007.
Montana update:
October 7, 2010 | Montana | Comments (0)From the story:
Several thousand Montanans across the state will be called and encouraged to participate in the meeting, which will take place on Thursday at 6:30 in the evening.
For the first time in Montana, supporters of Initiative 164, which will cap interest rates on payday loans, will use a telephone town hall meeting to discuss the November ballot issue.
If you’re a payday lending employee, customer or supporter in Montana, it’s time to step up and support the industry. Our opponents are well organized and hard working.
