Montana lawmakers support the VCFCA

Montanans save an estimated $37 million annually since we outlawed payday loan products and services in 2010.

The Consumer Financial Protection Bureau is currently looking to roll back a common-sense rule that would ensure that borrowers can repay their loans before they sign on the dotted line. Short of a statewide payday loan interest rate cap, as our state and several other states have implemented, the rule was supposed to help keep average everyday people out of the debt trap.

Luckily, some members of Congress are leading a bill that would protect consumers from the damages these loans cause people. The Veterans and Consumers Fair Credit Act would place a 36 percent interest rate (APR) cap on payday and car-title loans. This would extend the Military Lending Act, which only protects active-duty service members and their families, to protect all veterans, Gold Star Families, and every consumer across the country.

Our representatives in Washington will be asked to decide the future of sky-high interest rates in America and they have a chance to get this one right. The MLA is already held in high regard with voters and lenders already know how to comply with it. Montanans and the people of 15 other states all understand that payday loans are harmful for consumers. All lenders should have to play by a set of rules that protect people and families. Montana lawmakers should support the VCFCA.

 

Reader Comments(0)