Cap on payday loan interest rates sought

Voters in Montana may be asked to place a limit of 36% on the annual interest charged for short-term loans, which are often called payday loans.

Activists have been seeking to place an interest limit proposal before voters have submitted a proposed ballot initiative to state officials for review.

Supporters of an initiative say it's time to rein in loan companies that charge high rates that can require people pay interest of $25 for a two week loan of $100.

The owner of Easy Money Check Cashing Center in Billings cautions that a cap of 36% would put lenders out of business.

source:http://www.montanasnewsstation.com/Global/story.asp?S=7402905&nav=menu227_2