Tuesday, June 12, 2012

Nonprofit Donates $2 Million To Fight Short-Term Lending Limits

In an effort to fight potential restrictions on short-term lending, a Kansas City-based nonprofit has donated $2 million to a political action committee (PAC) dedicated to oppose such limits.

Missourians for Responsible Government (MRG) made its latest donation to the PAC -- Missourians for Equal Credit Opportunity (MECO) -- yesterday, according to The Kansas City Star. The latest gift was $181,500, raising the organization's total amount given to MECO to about $2.1 million since last August. MRG is the only donor to the PAC.

MRG hopes its donations will be enough to fight a proposed ballot measure in Missouri that cap annual interest rates on short-term loans at 36 percent. These include things such as payday or car title loans. A 2007 study by the Missouri Division of Finance found that the average interest rate for a payday loan in the state is 445 percent per year, which is about 54 percent higher than the national rate of 391 percent.

The fate of the proposed ballot measure is currently in limbo, after a Cole County judge ruled that the ballot summary and cost estimate were insufficient. The Missouri Secretary of State's office is currently appealing the ruling. Should the ruling be overturned, MRG will be hoping its investment will be enough to stop the measure.

You can read the full story in The Kansas City Star.

No comments: