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Payday loans have average interest rates of 129% in Colorado. A ballot measure proposes capping them - The Denver Post

March 10, 2018  |  The Denver Post  |  Link to article

payday lending cap

"A ballot initiative filed this month with the Colorado secretary of state’s office would cap the annual interest rates for payday loans at 36 percent — a dramatic reduction from the 129 percent such lenders charge on average now.

Payday lending has long been viewed by opponents as a predatory practice that disproportionately targets low-income minorities with promises of quick cash. But the early payday comes at a significant cost that can trap such borrowers — who already were scraping by financially — in a cycle of debt.

new report issued Wednesday by the Center for Responsible Lending, one of the groups pushing the ballot initiative, found that in 2016, payday borrowers paid on average $119 in interest and fees for loans worth $392. Some took out two or more simultaneously, spending an average of $238 to borrow $392."

This article originally published on February 21, 2018 from The Denver Post. It has been formatted for publication on Together Colorado's latest news page.

Read the full article from The Denver Post here