Bill to Let Voters Decide to Cap Rates on Payday Loans

Denver Post  
February 22, 2010
Fender, Jessica

A bill being introduced Feb. 22 by Rep. Mark Ferrandino (D-Denver) would allow Colorado voters to decide whether to restrict annual payday lending interest rates to 36 percent. Opponents predict the measure will force the payday lending industry in Colorado, which has an estimated 600 facilities and 1,600 employees, to completely shut down. "People need access to responsible credit, not predatory credit," Ferrandino insists. "They talk about jobs, but jobs at what cost? Bleeding hardworking Coloradans dry?" Colorado follows in the footsteps of other states that have imposed caps on the interest rates and seen a dramatic drop in loan stores. A similar proposal was issued in 2008 but fell apart after various amendments, and plans for reform in 2009 disintegrated before a bill could be drafted. Advocates of the Ferrandino legislation say giving the voters the final say could ease some lawmakers' angst.

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