Montana Payday Advance Loans Legislation Hits a Snag

Payday loans regulation tabled

Montana lawmakers face a long road to payday lending regulation.

Montana legislators are in a dead heat when in comes to payday advance loans regulation.

The House Business and Labor Committee voted 9-9 on a bill that would cap interest rates or fees on payday loans, effectively defeating it.

Still pushing the bill

The bill’s sponsor, Representative Bill Wilson, is trying to move the bill forward. He plans to push the bill out of the committee and to the House floor for debate. In order to pass in the house, the bill will need 60 votes.

Banking on changes

The original bill would have capped interest rates on payday advance loans at 36 percent. An amended version of the bill would instead cap the fees on payday loans and title loans at 10 percent of the value of the loan. The committee’s vote on this amendment also ended in a tie. Wilson plans to present the amended version of the bill to the House.

Up for debate

Wilson says the fee cap is a fair compromise that would be less harmful to payday lenders while adding protections for consumers.

However, “Rep. Mike Milburn, R-Cascade, said the legislation appeared to be intended to shut down the payday and title lending industry in Montana,” according to the Great Falls Tribune. Other opponents of the measure said the amended version of the bill would require a full debate.

Meanwhile, in Idaho

In neighboring state Idaho, the Senate has crafted a bill that would amend the state’s current lending laws. ... click here to read the rest of the article titled "Montana Payday Advance Loans Legislation Hits a Snag"