Bill Slashing Payday-loan Interest Clears Panel

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Denver Post 
March 9, 2010
Hoover, Tim

A committee in Colorado's House has approved House Bill 1351, which will cap payday lending annual interest rates at a maximum of 36 percent. Current law, which came into effect when legislators eased restrictions in 2000, allows for interest rates of 300 percent or more. Rep. Mark Ferrandino (D-Denver), the bill's sponsor, considers payday loans access to debt rather than access to credit. Payday lenders say that a 36 percent cap will put them out of business and leave thousands of employees without work; but the bill has found support from a number of borrowers, clergy, and advocates for the poor. Before passing the measure on to the full House with 7-4 party-line vote, the panel removed a section of the bill that would have put the issue before voters.
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