Consumers are expressing their support for traditional installment lenders and for Stand Up Missouri’s efforts to educate the public about a misnamed Missouri ballot initiative. The measure, misleadingly titled the “Payday Loan Initiative,” is purportedly aimed at restricting payday loans. Stand Up Missouri points out that the initiative would also take away consumers’ ability to choose and obtain safe and affordable traditional installment loans (TILs). If the initiative makes it to the ballot in November and is passed, it would eliminate not only payday loans in Missouri, but also the fundamentally different, highly regulated, and popular TILs.
One Missouri consumer, Professor Cynthia Frisby, shared her story, which was picked up this week by Finance In America and reporter Vanessa Nicolic. Consumers like Professor Frisby say that they appreciate traditional installment loans because, unlike payday loans, these traditional loans are paid in equal monthly installments over a set period of time, just like a mortgage or auto loan from a bank or credit union. They point out that TILs help them build their personal credit scores and offer a responsible loan option at reasonable rates.
According to Professor Frisby, because of the loan she received from a traditional installment lender, which she repaid on time, her credit score rose dramatically. “Because of the installment loan I received, I really want to give the loan company a lot of credit. I would not have been able to achieve the credit score I have now that basically qualifies me for anything I want or need, including my new car. The loan rate was actually more than reasonable, and I really want to thank them. The staff was so helpful, and it was a wonderful experience. My credit score has increased considerably.”
The professor addressed the inclusion of installment lending in the “Payday Loan” ballot initiative: “Critics need to understand that there are differences in the type of loan companies out there, and there are great places that do a great service for people, like me, who can benefit from an installment loan. The traditional installment company helped me so much! I have a great job but did not qualify for a bank loan, because I was not using credit. I paid cash and thought that was a good thing. I am glad to offer my story, because I believe wholeheartedly in the installment loan company that helped me.”
Stand Up Missouri is a nonpartisan coalition dedicated to educating Missourians about their right to informed credit choices and to protecting their access to safe and affordable traditional installment loans. The coalition seeks to educate Missourians about the effects of the “Payday Ballot Initiative,” the interest rate cap effort that would eliminate all small-dollar loans, not just payday loans. Some of the loans that would disappear from Missouri are the type of installment loan received by Professor Frisby.
To see Vanessa Nicolic’s report on Missouri’s Payday Ballot Initiative and watch Prof. Frisby discuss her experience with a traditional installment lender, click here.
Readers can explore this topic at http://StandUpMissouri.org to learn more about this vital issue.