Montana Payday Loan Law Fails

HELENA, Montana. Proposed payday loan laws failed in the Montana 2009 Legislature.

The proposed bills, introduced by two  liberal Democratic lawmakers, failed to reach the floor for debate thanks to a number of free trade thinking Republicans in the Montana legislature.

Montana Senate Bill 397, by Sen. Kim Gillan of Billings, would have capped interest rates on payday loans at 36% annually and provide for a 60-day repayment plan for people who were unable to repay the loan in full after a month. Her bill would not have allowed lenders to “roll over” a loan for another month, charging additional fees.

Montana House Bill 396, by Rep. Bill Wilson of Great Falls, would have capped interest rates on such loans at 36% annually.

We thank those free spirited legislators who still feel consumers should have as many choices as possible when trying to solve their financial problems and allowing payday loans to remain but one of several choices..

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