Montana I-164, Loan Interest Rate Limit Measure (2010)
| Montana I-164 | |
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| Topic Business regulations |
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| Type Initiated state statute |
Origin |
Montana I-164 was on the ballot as an initiated state statute in Montana on November 2, 2010. It was approved.
A "yes" vote supported this initiative to limit annual interst rates on payday and title loans to 36%, a decrease from 400%. |
A "no" vote opposed this initiative to limit annual interst rates on payday and title loans to 36%, a decrease from 400%. |
Election results
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Montana I-164 |
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| Result | Votes | Percentage | ||
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253,475 | 71.76% | ||
| No | 99,749 | 28.24% | ||
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- Results are officially certified.
- Source
Text of measure
Ballot title
The ballot title for I-164 was as follows:
| “ | Under Montana law, deferred deposit (payday) lenders may charge fees equaling one-fourth of the loan, which is the same as an annual interest rate of 300 percent for a 31-day loan or 650 percent for a 14-day loan. Title lenders may charge interest equaling one-fourth of the loan, which is the same as an annual interest rate of 300 percent for a 30-day loan. I-164 reduces the interest, fees, and charges that payday, title, and retail installment lenders may charge to an annual interest rate of 36 percent. It prohibits businesses from structuring other transactions to avoid the rate limit. I-164 reduces the license and examination fee revenue paid to the State because certain lenders may not renew their licenses. [ ] FOR reducing the annual interest, fees, and charges payday, title, and retail installment lenders may charge on loans to 36 percent. [ ] AGAINST reducing the annual interest, fees, and charges payday, title, and retail installment lenders may charge on loans to 36 percent | ” |
Full Text
The full text of this measure is available here.
Support
Supporters
- NeighborWorks Montana[1]
- Senators Dave Lewis[2]
- Senators Christine Kaufmann[2]
- AARP Montana[2]
- Montana Human Rights Network[2]
- Montana Community Foundation[2]
Arguments
- Tom Jacobson, executive director of Rural Dynamics, said, "Four-hundred percent is absolutely too high. It's too high ethically. It's too high financially. Once we can get this capped at 36 percent, we are going to help people become better long-term consumers." Rural Dynamics was a consumer credit counseling service in the state.[3]
- Liz Stoeckel, the fund development coordinator at HomeWORD, "Passing this ballot initiative to cap the interest rate, on payday and car title loans, will strengthen the economy. The majority of these businesses are owned by out of state companies. They collect millions of dollars in fees from Montana working families every year.."[4]
Opposition
Arguments
- Julie Howen of Title Cash Stores said, "There’s no way, if this passes, the services we offer will no longer be available in Montana. ... Banks don't want to deal with small amounts or short term loans, that’s one of the biggest issues where we really feel there is a market need."[5]
Media endorsements
Support
Ballotpedia has not located media editorial boards in support of the ballot measure. You can share media editorial endorsements, along with source links for this information, with us at editor@ballotpedia.org.
Opposition
- The Bozeman Daily Chronicle stated its opposition to the measure, arguing, "It's unfortunate that many Montanans find themselves so cash-strapped that they have to turn to these loans. But the fact of the matter is they do. And without payday loans, they could be in desperate straits. Voters should reject I-164."[6]
- The Great Falls Tribune was against the measure, urging a 'no' vote by writing, "We regret that many people do feel the need for these loans, and we agree with initiative backers that consumer education would go a long way toward obviating the need for them. But as long as there are people who have funding crises, there will be a market for this type of business. Passing I-164 will just drive it underground or onto the Internet, where no one's watching. Vote against I-164."[7]
Path to the ballot
An initiated state statute is a citizen-initiated ballot measure that amends state statute. Proponents collected signatures to put the initiative on the ballot.
Petition circulators had until the June 18, 2010 petition drive deadline to turn in signatures.
On July 19, 2010, the measure was certified for the ballot by the Montana Secretary of State, who stated that sponsors submitted enough signatures for ballot access.[8]
See also
External links
Footnotes
- ↑ Queen City News, "Initiative proposed to cap interest rates," February 24, 2010.
- ↑ 2.0 2.1 2.2 2.3 2.4 Queen City News, "Initiative 164 supporters launch campaign," September 8, 2010
- ↑ Bozeman Daily Chronicle, "Initiative to cap interest rates on November ballot," September 27, 2010
- ↑ KPAX.com, "I-164 amis to cap payday loan rates," September 1, 2010
- ↑ KFBB.com, "Ballot Initiative Could Put Short Term Lenders out of Business," July 27, 2010
- ↑ The Bozeman Daily Chronicle, "Chronicle editorial: Editorial board offers endorsements on key initiatives," October 20, 2010
- ↑ Great Falls Tribune, "'Cap the rate' initiative has appeal but should be rejected," October 27, 2010
- ↑ Billings Gazette, "2 initiatives likely qualified for fall ballot; 4 are question marks," June 18, 2010
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