HB 1310

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. ...

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: ...

CDOT???s budget is driven by four key factors: Size and condition of Colorado???s transportation system; Projected growth in state population; Projected growth in system use as measured by vehicle miles traveled; Projected decline in federal funding for transportation