Furor Erupts Over Colorado Payday-Lending Regulations

Denver Post
August 30, 2010
Fender, Jessica

Controversy has arisen in Colorado surrounding recently passed payday lending regulations, as two Democratic lawmakers behind the overhaul accuse the Republican attorney general's staff of favoring lenders when it comes to fees. A.G. John Suthers' office is tasked with devising regulations that cap what lenders can charge on six-month loans; and Democrat Stan Garnett, who is engaged in an election bid against Suthers, has accused Suthers of improperly accepting campaign donations from lenders. Sen. Rollie Heath (D-Boulder) is defending Suthers' office, saying that the legislation is exactly as it was intended to be. Denver Democrats Rep. Mark Ferrandino and Sen. Chris Romer, who sponsored the bill, disagree. Their original intent with the legislation was to require lenders to refund a portion of the loan-origination fee to borrowers who repay their loans on time, but the modified and final version of the bill said the fee would not be refundable. The whole of the legislation became tough to decipher as a result of contradicting amendments that were added in the final days.
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