Federal legislation has been proposed that would undo payday lending reforms enacted in Colorado and many other states, and it would prevent states from regulating these high-cost loans in the future.
We're happy to say that Attorney General John Suthers has joined 40 other attorneys general in opposing this legislation. The Bell is a member of the Coloradans for Payday Lending Reform coalition, which sent out this release yesterday.
Colorado consumers saved nearly $100 million in 2011 thanks to changes in the state's payday lending law, according to data in a report released Monday by Attorney General John Suthers.
The report shows the impact of the first full year of reforms, which were a major achievement of the 2010 legislative session. A key feature of the reforms is a six-month minimum term for payday loans, which gives borrowers an opportunity to pay them off without rollovers.
Testimony to the Senate Judiciary Committee February 13, 2012
Thank you for the opportunity to speak with you today.
I am Rich Jones, the director of policy and research with the Bell Policy Center. The Bell is a non-partisan, non-profit research and advocacy organization dedicated to making Colorado a state of opportunity for all.
A recent report by the Colorado Attorney General's Office on payday lending provides strong evidence that reforms enacted by the legislature in 2010 are working. Data for the last five months of the year – the period the reforms were in effect – suggest borrowers are paying much lower effective interest rates and are largely avoiding the cycle of debt that trapped many of them under the previous rules.
With Fall comes a noisy, busy season for organizations such as ours – a time that bears witness to our successes and the challenges before all of us. I ask, can you imagine Colorado without the Bell Policy Center?
Can you imagine Colorado without the Bell Policy Center?
Imagine if we hadn't written the seminal report on theTaxpayer's Bill of Rights in 2003, traveled the state to educate and build a coalition in 2004 or played a key role in passing Referendum C in 2005.