Tuesday’s election not only brought drastic change to the state Legislature, it also nearly wiped out payday loans in Montana.
Ballot Initiative 164, limiting annual payday loan interest rates to 36 percent, passed across the state with 71 percent of the vote — 76 percent in Hill County.
According to an Associated Press report, the new limit would only allow these lending businesses to charge $1.38 on a $100 two-week loan, and it’s no longer viable.
Virginia Zumbrun from Title Cash in Havre said her company will be loaning until the end of the year, and then closing just before the initiative takes effect on Jan. 1.
Zumbrun, who has worked at the 11-year-old business for the last seven years, said that it was the decision of Title Cash corporate headquarters to shut down its Montana stores.