That’s what this article in the Denver Post says of the Colorado payday lending legislation.   The  coverage  fails to mention that an effective ban on payday lending would have done nothing to help consumers in Colorado.  Consumers are best off when they have all the necessary information and are able to make financial decisions based on what’s best for them.  Banning a credit option is not “protecting consumers.”

A job well done to KCFR Colorado Public Radio host Ryan Warner on his segment today, “Lawmakers take close look at payday loans.”  Warner interviewed State Rep. Mark Ferrandino, sponsor of a bill that would force payday lenders to close in Colorado, and Ron Rockvan, a Colorado payday lender. 

Mr. Warner actually took the time to research the industry and ask intelligent and thoughtful questions, giving both sides the opportunity to make their case. 

Hats off to good journalism.

You can listen to the full 10-minute segment at http://kcfr.org/index.php?option=com_content&task=view&id=94&Itemid=234&target_pg=com_day.  Scroll down to April 2nd. 

The Tribune newspaper of Greeley, CO carries a guest piece today on payday lending legislation by Michael Hough, director of the Commerce, Insurance and Economic Development Task Force at the American Legislative Exchange Council.    Hough says:

“This misguided legislation assumes that the majority of Coloradans are unable to make appropriate financial decisions without the state intervening on their behalf with heavy-handed government regulations. Colorado lawmakers should reject this legislation because it will financially hurt the state’s residents and deprive them of the freedom to take out a payday loan if they so choose.”

Terry Kibbe of the Consumers Rights League has a guest piece today in the Denver Post that picks up on recent research by Don Morgan of the NY Federal Reserve. 

Money quote: ”Morgan also questioned the validity of the research from the Center for Responsible Lending saying the Center ‘overstated the number of problem borrowers.’ He noted that banning payday loans actually leads to more people bouncing checks, filing for bankruptcy and fighting with collectors. After payday loans in Georgia were banned in 2004, Morgan found, “bounced checks in the Fed processing center in Atlanta jumped by 1.2 million, a 13% increase.”

The rally in Denver not only drew lots of people, but lots of media coverage as well.   Here’s just a few of the stories.    Colorado Springs Gazette, Channel 7, and Rocky Mountain News.

More than 600 payday lending employees and supporters rallied on the steps of the Colorado Captiol on Tuesday to voice their opposition to a bill that would cap the interest rate of payday loans at 45 percent interest. Under a 45% APR cap, the fee per $100 would be $1.73.  Payday lenders would be forced to close and 1,800 people would be out of a job. 

 

 

 

 

 

 

 

Read more and watch the video coverage at: http://www.thedenverchannel.com/news/15568724/detail.html