Payday Pundit

Rocky Mountain News: Payday loan bill languishes due to Veiga amendment

A legislative attempt to place restrictions on the state’s payday lending industry appears dead as the bill languishes in a Senate committee.

House Bill 1310 sought to restrict or eliminate most of the fees and set a maximum interest rate on payday loans. Backers of the bill said it would end payday borrowers’ “cycle of debt.”

The bill ran into trouble from the beginning, with opponents saying payday loans are cheaper than bounced checks or other late fees. The payday loan industry argued the restrictions would effectively put it out of business.