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.
