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Proponents of an initiative that would cap the interest rate for payday and title loan lenders held a rally in Great Falls on Wednesday.

Supporters of I-164 say it would help keep payday loans under control, but lenders say they're being unfairly targeted, and not only would passage of the measure put them out of business, but it would leave their customers with nowhere to turn.

MT state legislators Anders Blewett, Jesse O'Hara, and a group of other organizations are hoping a bi-partisan effort will help get voters to pass the initiative; Blewett noted that passage of I-164 would cap interest rates at 36%.

Blewett says over the last decade the legislature has failed to regulate payday and title loan lenders which is why they're taking it to the voters. Blewett noted that the 36% interest rate they're proposing is the same rate that credit card companies and other lenders are capped at.

On the other side, payday and title loan lenders say the initiative would put them out of business and eliminate choices for consumers.

Jullie Hoen at Title Cash says that in many cases, their customers don't have the time to wait for a loan to be approved at a bank. For others, payday and title loans are their only option; she noted, "For some, their vehicle is the only thing they own."

Hoen says over the last year, there has been 33% growth in the region for her industry which she says shows there's a need for these businesses.

If I-164 passes, Hoen says nearly 800 people in Montana will lose their jobs because the industry will shut down.

Both sides say they're gearing up to educate consumers about the initiative, so Montana residents can expect to see and hear more about the issues for the next several weeks.

You can learn more about I-164 at the MT Secretary Of State website, including this overview:

BALLOT LANGUAGE FOR INITIATIVE NO. 164 (I-164)
As revised by Order of the Supreme Court of the State of Montana

INITIATIVE NO. 164

A LAW PROPOSED BY INITIATIVE PETITION

Under Montana law, deferred deposit (payday) lenders may charge fees equaling one-fourth of the loan, which, as an annual interest rate could range from 300 percent to 650 percent. Title lenders may charge similar interest rates. I-164 reduces the interest, fees, and charges that payday lenders, title lenders, retail installment lenders, and consumer loan licensees may charge to an annual interest rate of 36 percent. It prohibits businesses from structuring other transactions to avoid the rate limit. It also revises statutes applicable to pawn brokers and junk dealers.

I-164 reduces the licenses and examination fee revenue paid to the State because certain lenders may not renew their licenses.

[ ] FOR reducing the annual interest, fees, and charges payday, title, and retail installment lenders and consumer loan licensees may charge on loans to 36 percent.

[ ] AGAINST reducing the annual interest, fees, and charges payday, title, and retail installment lenders and consumer loan licensees may charge on loans to 36 percent.