BILLINGS – At least two payday lenders in Billings are closing after voters overwhelmingly approved an initiative to cap interest rates on payday and title loans at 36 percent.
Joyce Bird tells KULR-TV in Billings that she is closing Money Lenders, a business she opened 12 years ago.
Although the initiative doesn’t take effect until January, Bird says she is informing her nearly 400 customers that she will be closing down by the end of the month.
Lenders have said they would not be able to stay in business by charging $1.38 on a two-week loan for $100.
KULR also reports that the owners of Tiki Hut Title Loan closed their doors on Wednesday and had no comment on the initiative.