You may recall that last year a throng of do-gooders rose up against the many payday loan businesses they claimed were exploiting the poor by charging what they called exorbitant interest rates. These places typically charged $20 to $30 dollars “interest” on maybe a $100 loan with a duration of 2 to 6 weeks. When you figured the per-cent per annum it sometimes reached a total annual rate in excess of 300%. Montana voters decided in November to cap this usury interest rate to 36% per annum. What has instead happened is that nearly all of the payday loan places have locked their doors and went out of business. Many of the poor people those do-gooders tried to help by meddling in things they knew nothing about are now left with no place to turn. They have no food, no place to stay and no emergency plan but at least they are not being charged too much interest. The Great Falls Teachers Credit Union has stepped up to the plate and has begun offering a $500 line of credit to those in need according to this KFBB TV news report.
Doesn’t Havre also have a Credit Union? I wonder if the Bear Paw Credit Union will step up to the plate here in Havre and also reach out to the poor and needy with some emergency loan mechanism as they have done in Great Falls? Let’s hope so.
Story at KFBB . Com