Montana Supreme Court OKs Payday Loan Initiative

Missoulian
August 18, 2010
Johnson, Charles S.

The Montana Supreme Court on Aug. 17 denied a request from the Montana Consumer Finance Association, thereby allowing an initiative to cap interest rates charged on payday and title loans to remain on the November ballot. If approved, Initiative 164 (I-164) would cap annual interest rates at 36 percent. Four justices ruled in favor of keeping I-164 on the ballot, determining that the attorney general had acted within his considerable discretion; and two justices dissented from the decision. The Montana Consumer Finance Association had argued that I-164's statement of purpose failed to mention some specific details. Still, I-164 supporters praised the decision. "Montana voters agree that 400 percent interest is too high and support capping the rate," said Matt Leow, field director for the I-164 sponsors. "We expect I-164 to pass in November, which is precisely why opponents attempted to knock it off of the ballot. Thankfully, the court's decision preserves for Montana voters the final decision on this important issue."
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