Colorado heating up
February 21, 2010 | Colorado, industry | Comments (1)Rate cap bill will be introduced tomorrow:
The bill that Rep. Mark Ferrandino and Sen. Chris Romer are sponsoring would cap payday loan interest rates at 36 percent.”We’re just trying to put them back under the same regulation that every other financial institution has in this state,” said Ferrandino.But the bill was shot down two years ago. Ferrandino said payday lenders argued that a lower interest rate would drive them out of business in Colorado.
Payday lenders told the truth. A 36% rate cap translates to $1.38 per $100 loaned.
Comments»
Are opponents of the Payday Loan Industry ACTUALLY as ignorant as they seem, or are they just using it as a cover in order to mis-represent the “facts” such as “high APR’s”?
I would assume that anyone voted into a government office should have common sense enough to work a CALCULATOR, and would therefore know that using APR calculations on a short-term loan is completely worthless other than “tricking” people who actually don’t know any better and perhaps cannot work the aforementioned calculator.
It doesn’t matter really, but I wish I knew if our politicians are liars, or just lazy and un-educated in the case of Payday Loan legislation talks.