United Against Predatory Lending Practices

Great Falls Tribune
September 2, 2010
Blewett, Anders; O'Hara, Jesse

Despite their opposing party affiliations, Montana Reps. Anders Blewett (D-Great Fall) and Jesse O'Hara (R-Great Falls) agree that a 400 percent interest rate is to high and that something must be done to protect the state's borrowers -- as well as its economy -- from predatory lending practices. They both are standing behind I-164, which would cap the interest rate on predatory payday lending and car title loans. Current state law allows lenders to charge 650 percent annual interest for two-week payday loans and 300 percent annual interest for a 30-day care title loan, resulting in an average interest rate of more than 400 percent for payday loans. I-164 would also end the debt trap created by these lenders because of the short turnaround time that leads borrowers to take out repeat loans and amass exorbitant fees. The pair of legislators say that Montana's current economy makes consumers particularly vulnerable and adds that the state's residents deserve the same protection that military families have been granted by the Department of Defense -- a 36 percent cap on interest rates. Blewett and O'Hara assert that voting for I-164 will protect working families, seniors, and the state's overall economy. Borrowers trapped in the debt cycle caused by usurious lending practices are not able to help the local economy by spending money on goods and services, and most of the fees and interest that go to predatory lenders leave the state because lenders typically are owned by out-of-state corporations. The lawmakers conclude, "No matter which side of the political aisle you sit on, it's clear to see I-164 is what's right for Montana."
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