STAND UP MISSOURI APPLAUDS JUDGMENT ON “PAYDAY LOAN INITIATIVE”
Initiative “likely to deceive petition signers and voters”
JEFFERSON CITY, Mo., (April 6, 2012) — Stand Up Missouri applauds the Circuit Court of Cole County, Missouri, and its ruling to vacate Initiative Petition 2012-66 (the so-called “Payday Loan Initiative”). The court found that the ballot title is likely to misled voters about the real impact of the initiative petition because it failed to accurately assess its economic impact on Missouri by disregarding its detrimental effect on traditional installment lenders and other safe and affordable credit options.
The court’s decision provides strong validation for Stand Up Missouri’s position that the traditional installment loan industry is a unique and independent entity from payday and title loans.
In his judgment, Judge Daniel R. Green wrote that “it is also undisputed that Dr. Haslag’s fiscal impact analysis considered only title and payday lenders even though other types of lenders would also be impacted by the initiative.” Judge Green went on to say that the “Auditor’s fiscal note acknowledges that other lenders, referred to as ‘510 lenders’ in reference to the chapter of the revised statutes by which they are regulated, will be negatively impacted and many will close down. Yet the Auditor did not perform a fiscal analysis of this undisputed impact.”
“The ruling by Judge Green makes it abundantly clear that the traditional installment loan industry is fundamentally different from other credit products,” said Tom Hudgins, President and CEO of Stand Up Missouri. “This is an important step in the effort to protect safe and affordable credit options in Missouri,” added Hudgins.
Americans have relied on traditional installment loans as a safe and affordable option for personal and household credit for over 100 years. These loans afford Missourians the ability to build financial security and to help individuals and families stave off financial distress when the need for credit arises. They represent a particularly important credit option during times of economic uncertainty
Stand Up Missouri will continue to educate Missourians about the importance of financial freedom and the benefits of traditional small-dollar installment loans, address misinformation disseminated by special interest groups, and protect access to safe and affordable credit in Missouri.
For more information on Stand Up Missouri, please visit www.standupmissouri.org.
About Stand Up Missouri
Stand Up Missouri is a non-partisan coalition representing consumers, businesses, civic groups, and faith-based organizations from across the state who have come together to protect access to safe and affordable lending options. For over 100 years, Americans have relied on traditional installment loans as a safe and affordable option for personal and household credit. In these times of great economic uncertainty, it doesn’t make sense to eliminate or reduce access to the credit provided by these important loans.
If the lending cap ballot initiative passes, it will hurt individual Missourians, families, and the state economy, and it will result in lost jobs and millions of dollars in lost revenue for businesses across Missouri. Stand up Missouri is working to educate Missourians about their right to informed credit choices and continued access to safe and affordable loans.
Stand Up Missouri does not represent payday lending or payday interests.