HB 1290

The effort to undo payday lending reforms failed yesterday, and that means Colorado consumers are better off today.

It's a victory for hard-working Coloradans, and you helped.

A key moment in yesterday's tense back-and-forth was when the Senate held firm on its rules bill. That's when you spoke up, and we thank you for adding your voice to the chorus.

Yesterday, the House of Representatives took a risky and highly unusual step to weaken 2010's payday lending reforms and raise rates on Colorado borrowers.

The House did this by amending the annual rules-review bill – procedural legislation that implements hundreds of state agency rules and regulations.

By Marianne Goodland
The Colorado Statesman

Efforts to undo part of last year's payday lending reforms came to an end on Thursday, when the Senate Local Government and Energy Committee voted on a party-line 3-2 vote to shut down House Bill 11-1290.

The Local Government committee was the only one in the Senate without a clear supporter or sponsor of HB 1290, and it was sent the assignment of hearing HB 1290 from the Senate Finance Committee in a surprise move Tuesday.

Rich Jones, Director of Policy and Research
The Bell Policy Center
May 5, 2011

Thank you for the opportunity to speak to 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. We have been working for more than four years to reform payday lending in Colorado to ensure that payday loans are a source of credit for low-income borrowers and not a debt trap.

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.

Last year, the Colorado legislature reformed payday lending in Colorado. It was one of the major achievements of the 2010 session, and borrowers are better off today because lawmakers cast an important vote for consumer protection.

Payday lenders fought these efforts and are back this year, trying to undo last year's important work.

The showdown is Tuesday, when HB 1290 will go before the Senate Finance Committee.

Rich Jones, Director of Policy and Research
The Bell Policy Center
March 28, 2011

Thank you for the opportunity to speak to 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. We have been working for more than four years to reform payday lending in Colorado to ensure that payday loans are a source of credit for low-income borrowers and not a debt trap.

By Marianne Goodland
The Colorado Statesman

The effort to race through a change to last year's legislation on payday loans has slowed from a flood to a trickle.

House Bill 11-1290 was introduced on Friday, March 25 and had its only committee hearing just four days later. Six days after its introduction, HB 1290 was voted out of the House on a 36-27 vote, with four Democrats voting with the chamber's 32 Republicans present that day.

Last week, in breakneck speed, the House approved a bill that would increase the fees that payday borrowers must pay if they repay their loans early. It creates a financial incentive for payday lenders to churn the accounts and weakens the six month minimum loan term that was at the heart of last year's reforms.

Described by proponents as a "technical" amendment and a "clean-up" to last year's payday lending reform law, House Bill 11-1290 passed out of the Business and Economic Development Committee on a party line vote on March 29 and passed the full House on March 31.