Montana Payday Loan Cap Update

Payday loan borrowers in Montana should be aware of the initiatives for a payday loan cap.  Payday loans are a short term loan which are paid back with interest when your next paycheck arrives.  Many people are upset with the alarming rate of borrowers who are falling into a cycle of debt.  For this reason, many legislators are creating an interest cap to try to curb outrageous interest rates on payday loans which can reach numbers like 2500 percent.  On the other side, there are opponents to curbing the interest rate as this will make approving loans much more difficult for the people that they are intended to help.

In Montana, an interest cap on payday loans is just an idea.  Recently, the opponents of interest rate capping are trying to hinder the capping from being placed on the November ballot.  The Supreme Court will not be opposing this initiative.  Another problem that arose was the changing of the language by the Supreme Court.

Opponents of the cap have asked to halt the certification of the initiative since the language has changed, stating that it is unfair that the voters and the council saw two different versions of the initiative.