The people's voice. [volume] (Helena, Mont.) 1939-1969, 1949-02-04
Proposed Loan Shark LEGISLATION

Proposed Loan Shark" Legislation
Because of the need for rigid regulation of the small LOAF
business and because several bills have been presented TO
consideration in drafting legislation to handle this mportan
matter during days I've tried make objective
finding study the four before the cham
bers Here the conclusions have reached:
HB Sc by Emmons and Smith d. Deer Lodge) setting
maximum of cent month loans $780, appears
be basicay the best proposal ALL although
amendments needed if the lender money
$50 Reports that this bill today pretty
much of ISSUE and that in its place HB by
ID Silver Bow now looked on with favor by members
of the house and the lobby.
Because of excessive monthly service charges believe HB
1876 accomplish only of two thngs-eher muddy
the water that no regulatory legislation will be Forthcoming
enacted egalze interest that will be
little short of exortion The provides for 20
per month loans unpaid balance up $780,
exceed y unpaid balances of $780, This part
satisfactory but when add the monthly carrying
charges-50c S. Cor 1919 month"; 81 SO SIS
10to 6 co. $3.50 $50 through $500 6 to less than %
month"; thus becomes apparent that this bill would be
expensive to the necesus borrower particularly the
borrower of $50 less.
The other two bis-HB 2O8 by Howard 3D. Wibaux) and
Sd II by Rice (Teton) Toman Or, Powder Rver Padbury
r. Lewis and Clark and Kelly 3D. Lake, identical
and are known the uniform small loan bills
When stacked along side of HB 1885, appear
to be the least Objectionable but here again there
grounds for conendn that should they be drawn
small borrowers will be subjected exorbtant
Likewise sections of both bills so vague as to
qure Interpretation by entire staff of Philadelphia lawyers
I quote:
I'd Evasions The provisions of subsection OBJ
section shall apply to person who seeks to evade its
application by any DEVICE subterfuge preense what
The payment of three hundred dollars $4,000
less in money credit goods things in action
sderaton for sale assignment order for the
payment of wages, salary commissions other compen-
saon for services whether earned be earned shall
for the purposes of regulation under this act be deemed
loan of money secured by such SALE assignment order
This legal jargon doubt be reduced to simple
terms by amendment Likewise, believe that
revision be effected rates. that these
of genuine benefit to the necesus borrowers and small
loan operators.
AS previously pointed the cost of making extremely
small loans (e under $500 is considerably higher than the
that could be the basis of per
month To operate and make reasonable return the small
operator either be permitted fairly high
$50 $3.50 $780, else decline the making of any
S50-nssng instead that borrowers accept
averaging 500
But of $500 to S300-and goody percentage of
regulated states in this ategory-the ap
20 per month charges permitted of
Particularly in this when the lender demand
hat security be put up to sufficiently the loan.
Since this uniform loan law appears to be generally
letter proposal than HB 1885, suggest that amendments
either fix statutory limitation of $500 for such
ecesus borrowing if it be determined that $500
maximum that substantial cut in interest be
into the law covering loans $3.50 5000 By
mending SD II and HB 208 only regua
modcum of protection for the small borrower against
sga imposition of interest rates that uuryHLB