Final Colorado action
May 5, 2010 | Colorado, federal legislation, industry | Comments (0)No more two-week loans. Another curtailment of consumer choice. From the story:
The 33-32 vote in the House sealed the most substantial victory that critics of payday lending have seen at the Legislature after years of trying. Critics say that the short-term, high-interest loans trap borrowers in a “cycle of debt” that encourages them to take out new loans to repay old ones.
House Bill 1351, which the Senate passed last week, converts short-term payday loans into loans with terms of six months to a year. Lenders could still charge hefty fees and a 45 percent interest rate that could make a $500 loan cost more than $1,000 to pay back.
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