A pile of money on fire.
Will the new payday lender laws in Colorado help the economy? CC by purpleslog/Flickr

New laws intended to limit the short term cash loans offered in Colorado are going to go into effect. Colorado payday loan direct lenders are going to have both interest and repayment terms capped. The bill is is a compromise, weaker than some legislators had hoped for but stronger than industry lobbyists had pulled for.

Keeping interest rates in check

Personal debt loans in Colorado are going to be limited to 45 percent annual interest rates, though annual interest doesn’t actually exist in the world of short-term lending. Payday loans usually have a term of a couple of weeks or a couple of months, not a full year. Still, Colorado is choosing to focus its law on an annual interest rate. Currently in Colorado, the loans are capped at 300 percent interest. A few legislators were pushing for a 36 percent cap.

Extending repayment terms

The term on short term loans in Colorado is usually set at two weeks or less. That term will be extended as of August. The minimum term a lender can offer will be six months. Borrowers will also need to be offered the ability to repay the loan early.

Fees for origination and carrying

The newest bill in Colorado allows fees for both carrying the loan and originating the loan. The lender will be able to charge $ 75 to originate the loan. Lenders also can charge monthly fees of up to $7.50 per $100 borrowed, but there is a to $30-per-month maximum.

Debating Colorado’s payday loans

There has been a heavy debate over pay day loans in Colorado. Some legislators are calling for payday loan industry businesses to be banned completely. The current Colorado bill passed with just one vote. No matter what, payday loans will continue to be a controversial issue for most state legislators for years to come.

Post By bryanh (1,420 Posts)

Connect

Do you have a fantastic idea related to this article, but just don't have the money you need to start your own company or side-business? Get the loans you need from https://personalmoneynetwork.com to help get your new company underway, from the small loan professionals at PersonalMoneyNetwork.

PG&E to pay $70 million for pipeline tragedy

PG&E to pay $70 million for pipeline tragedy

Pacific Gas and Electric Co., a northern California utility, has agreed to pay $70 million to the California town of San Bruno for a pipeline explosion that killed eight people in 2010. Company says it’s remorseful The San Francisco-based power company’s president, Chris Johns, released a statement Monday, saying PG&E is sorry and eager to […]

Judge stabbed and deputy shot in Washington courthouse

Grays Harbor County Courthouse

Following a standoff in a Washington state county courtroom Friday, a man reportedly escaped after shooting a sheriff’s deputy in the shoulder and stabbing a judge in the neck. The man is still at large. Treachery among the tree farms The incident occurred Friday afternoon in the western Washington town of Montesano, which bills itself […]

Microraptor was one flashy little dinosaur

Microraptor fossil

A team of Chinese and American scientists have found that Microraptor, a small four winged dinosaur that went extinct about 130 million years ago, was likely black and almost certainly had glossy, iridescent feathers. Until now, the coloring of extinct creatures was a matter of pure speculation. That may no longer be the case. The […]

Autocorrected message leads to school lockdown

Homage to the Sun

Adjacent schools in Georgia were locked down for two hours Wednesday after a text message reportedly warned of a “gunman” on campus. Later, it was learned that the message was the result of a smartphone autocorrect function, attempting to “fix” the misspelled slang word “gunna.” A series of mixups A series of mixups led to […]