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Legal Commentary

: The Volokh Conspiracy

Montana Ballot Initiative to Eliminate Non-Traditional Lending Products

By Todd Zywicki

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(Todd Zywicki)

Montana has on its ballot an initiative that would cap interest rates on non-traditional consumer loans (payday, auto title, and installment loans) at 36%.  It seems to be pretty comprehensive except for banks.  It also changes the rules for pawnbrokers.

Here?s an excellent recent analysis of some of the probable effects of the law.  Given that credit card lending has still not recovered from the credit crunch and the Credit CARD Act this law would come at an especially inopportune time for Montana consumers.


Full post as published by The Volokh Conspiracy on October 29, 2010 (boomark / email).

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