Payday lending bill faces first test on Monday

We at the Bell have been working for several years to reform payday lending in Colorado. We can talk about the problem in terms of interest rates and fees, the average number of loans or the prevalence of same-day-as-payoff loans. Yes, we know the numbers and all the statistics.

But we never forget the real reason we are trying to change this law: These loans are predatory products, and they hurt people. And it's not just the borrowers who get hurt -- the rest of us pay a price and our economy suffers when people are deprived of the opportunity to succeed.

Payday loans fail to work as advertised -- the majority of loans are not paid back on time. That means borrowers take out a second loan to pay off the first, and then a third, and that means they get trapped in debt.

We've been working to close a loophole that allows payday lenders to operate far above Colorado's usury limit.

House Bill 1351, which will be heard before the House Judiciary Committee on Monday, will ask lawmakers to let Colorado voters decide if a 36 percent interest rate limit is good for state residents.

We ask you to contact your representative and tell him or her that you support making a bad product better. If your representative is on the Judiciary Committee, it is even more urgent.

Your voice matters. Your voice needs to be heard.

House Judiciary Committee
Rep. Claire Levy, Chair
Rep. Beth McCann, Vice-chair
Rep. Lois Court
Rep. B.J. Nikkel
Rep. Bob Gardner
Rep. Sal Pace
Rep Daniel Kagan
Rep. Su Ryden
Rep. Steve King
Rep. Mark Waller
Rep. Joe Miklosi