Colorado's new law on high-cost lending may be a model for other states
Some states, particularly Utah, have relatively loose limits on the interest rates that banks chartered within their borders can charge. Those banks sometimes work with high-cost lenders to offer loans with rates above what Colorado and other stricter states would otherwise allow — an arrangement that consumers advocate deride as the "rent-a-bank" model. That approach is "saddling working families with high-cost debt," said Ellen Harnick, director of state policy at the Center for Responsible Lending. Other states should follow Colorado's lead and prevent their residents from being charged