Economic Opportunity

The payday lending folks have been working hard to defeat a bill in the state legislature that would cap their industry's annual interest rate at 45 percent and limit fees. Who could blame them? Their cash cow is in peril of being neutered and they're packing hearings at the Capitol in an effort to derail the measure. ...

Experts analyzing the subprime mortgage crisis have assessed some of the blame for the situation on predatory lenders who mislead borrowers into committing themselves to loans they could not afford. Low introductory interest rates gave way to ballooning fees, leaving borrowers in uncomfortable or unsustainable financial positions. That unscrupulous behavior is nothing compared to that of payday lenders.

Back in 2000, the Colorado legislature gave a valuable gift to an industry that specializes in short-term loans. Lawmakers exempted so-called payday lenders from state laws capping interest rates at 45 percent. Payday lending operations exploded in Colorado, and today they charge customers, primarily the working poor, annual interest rates of about 350 percent. ...

A bill before the Colorado legislature would limit the interest and fees payday lending businesses can charge residents. House Bill 1310, which narrowly passed the house in February, would limit the annual interest rate on short-term loans the businesses provide borrowers to 45 percent. It would also limit lenders to assessing only one $60 finance fee per borrower per year. ...

News article on House Bill 1310, with quotes from Rich Jones.

To those who have never been poor, or never empathized with a poor person, the rhetoric of the payday-lending industry might sound convincing. Yes, the payday-lenders admit, some borrowers can't make their payments. But, they argue, that doesn't mean payday loans should be capped at 45 percent. ...

Think lending money at 353 percent should be legal? What about charging $500 to borrow $300? This is not only legal in Colorado, it happens every day. It's called payday lending, and it's sending Coloradans into a cycle of longterm debt, taking $76 million a year out of our economy. Here's how it works: ...

Senate Bill 122 represents a net opportunity gain for Colorado by protecting employees who share salary information with their colleagues from being retaliated or discriminated against. Allowing employees to discuss wage information is one way that workers can learn whether they are being treated equitably and to take action if they are not. Knowing that pay inequities exist is the first step to taking action to correct them.

House Bill 1310 represents an opportunity gain for Colorado by reducing the costs of payday loans and extending the time allowed to repay them. This will address the current flaws in how these loans are currently structured and remove their predatory features. According to the Center for Responsible Lending, eliminating the predatory aspects of payday loans will put $76 million back into the pockets of Colorado payday borrowers.

House Bill 1310 represents an opportunity gain for Colorado by reducing the costs of payday loans and extending the time allowed to repay them. This will address the current flaws in how these loans are currently structured and remove their predatory features. According to the Center for Responsible Lending, eliminating the predatory aspects of payday loans will put $76 million back into the pockets of Colorado payday borrowers.