CONSUMER CREDIT COUNSELING SERVICE APPLAUDS
EFFORTS TO REGULATE PREDATORY LENDING

December 15, 2006 (GREAT FALLS, MONTANA) -  Consumer Credit Counseling Service of Montana applauded the efforts of Montana Attorney General Mike McGrath and Montana Representatives John Parker (D - HD23) and Shannon Augare (D - HD16) today in their joint announcement of the Predatory Lending Bill, House Bill 29.

“Consumer Credit Counseling Service remains committed to working with our elected officials in passing this very important legislation” commented Tom Jacobson, President and CEO of the organization.  “Montanans deserve fair and reasonable opportunities for access to capital and this legislation does just that” continued Jacobson.

HB 29 will:

• cap loan amounts at 25% of a consumer's net income or $300, whichever is less
• cap the APR at 36%, the same cap Congress approved for active military personnel
• create a database to ensure that consumers have only one outstanding loan at a time
• establish mandatory repayment plan provisions upon consumer request for a loan in default
• prohibit additional loans to consumers who are under repayment plans increase the license renewal fee for lenders from $125 to $500 and the annual exam fee from $187.50 to $250

Title lending provisions in the same bill will:

• cap the APR at 36% and require that lenders conspicuously disclose the APR to consumers
• establish a minimum 30-day term for title loans
• define title loans to exclude property that serves as a residence (mobile homes)
• prohibit fees not expressly allowed for by the Act
• establish a complaint and hearing process for violations through the Division of Banking.

Click here to learn more about the legislation and call for action.

© 2006, Consumer Credit Counseling Service

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