thanks missoulian

by problembear

thanks to the missoulian editorial board for recognizing the importance of capping the interest rate on payday lenders and for supporting citizen’s ballot  initiative 164 in the upcoming Nov 2 election.

it is so well written that i want to provide some excerpts….

“While Montana law does prohibit borrowers from taking out more than one loan at a time, borrowers often “flip” or “churn” their loans by taking one out right after another to keep caught up with their repayments. In fact, according to Montana Women Vote, the average borrower in the U.S. will “flip” their loans eight times in a year and pay a total of $800 for a $300 loan. These borrowers essentially remain perpetually in debt to payday lenders. According to the Center for Responsible Lending, a full 76 percent of the total annual volume of payday loans in this country is comprised of churned loans.”

and this….

” The Montana Division of Banking and Financial Institutions reports that last year, payday lenders issued nearly 150,000 loans and raked in $7.5 million in interest and fees from fewer than 35,000 borrowers. That’s an average of four loans per borrower.”

payday lenders prey on the most vulnerable of our working poor by keeping them in debt with onerous interest rates that should shame anyone with a conscience. thanks missoulian, for recognizing this and urging our support of CI -164.

 


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  1. Ruthie in Missoula

    I’d like to read a reaction from Ed Kemmick (Lee Enterprises’ Billings GHazette) given his column against this initiative he wrote last week. Kemmick just didn’t think this thing through or didn’t have all the facts. Just seems so obvious as laid out in the Missoulian’s editorial. http://www.missoulian.com/opinion

  2. Keith

    I wasn’t aware that the payday loan folks held cattle prods up to peoples throats forcing them to sign up for ridiculous loans.

  3. keith- i would liken it more to a shiny green lure with barbed hooks trolling for our working poor who long for some relief from their dreary broke after every payday lives.

    to a single mom using her every penny just trying to survive these loans look like a way out, but unless she can repay the entire loan off in one or two paydays, she is hooked, gutted and filleted by these predators. it is a clever trap devised by businesses with no conscience.

    fair fish and game laws enact rules for hunters and fishermen to make it more fair for the prey. they don’t blame the fish for biting as you do. we need the same fairness in lending. 36% is plenty of interest to charge our working poor. small banks are already gearing up to serve this market when this law passes just like all the other states that have capped the interest rates for these loans.

    montana is too good to allow 300-650% interest on our most vulnerable citizens to continue.

  4. mr benson

    We don’t allow snake oil cures for cancer either. Good for the Missoulian, who did what the Chronicle wasn’t smart enough to figure out.

  1. 1 Tweets that mention thanks missoulian « 4&20 blackbirds -- Topsy.com

    […] This post was mentioned on Twitter by jhwygirl, problembear. problembear said: thanks missoulian https://4and20blackbirds.wordpress.com/2010/10/24/thanks-missoulian-2/ for your support of MT CI-164 cap the rate! […]

  2. 2 Stop the Predatory Loan Trap: Vote YES to I-164 « 4&20 blackbirds

    […] got to Sunday’s Missoulian editorial endorsing I-164, the citizen’s initiative working at reigning in the payday loan lending […]




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