Payday lending 'fix' switched to Local Government Committee

Update on the payday lending bill: The "fix" we wrote about yesterday has switched committees. House Bill 1290 now goes to the Senate Local Government and Energy Committee on Thursday morning. We appreciate your help yesterday, but with this change, we are asking you to contact members of the Local Government Committee. Your voice is important – tell your legislators what you think.

To recap, HB 1290, introduced on behalf of the payday lending industry, proposes a "technical fix," but there's nothing technical about it. The intent is to remove a central provision of last year's bill.

This so-called fix would make the origination fee on loans non-refundable. Doing that would increase the costs to borrowers who pay off their loans early. Once again, it would provide a strong financial incentive for lenders to churn loans by enticing borrowers to pay off one loan so that a new one, with a new round of fees, can take its place.

We believe last year's reforms give borrowers a fair chance at paying off these loans, and removing this consumer protection is a bad idea. If you share our opinion, please contact members of the Local Government Committee and tell them to vote NO on the payday "fix."

Chairman Joyce Foster, D-Denver
joyce.foster.senate@state.co.us
joyce@joycefoster.com

Vice chair Jeanne Nicholson, D-Black Hawk
jeanne.nicholson.senate@state.co.us
nicholsonjeanne@gmail.com

Sen. Irene Aguilar, D-Denver
irene.aguilar.senate@state.co.us
ireneaguilar.md@gmail.com

Sen. Bill Cadman, R-Colorado Springs
bill.cadman.senate@state.co.us

Sen. Ellen Roberts, R-Durango
ellen.roberts.senate@state.co.us
staterepellenroberts@gmail.com