News & Media

Predatory Payday Lending in Colorado - The Bell Policy Center

February 9, 2018  |  The Bell Policy Center  |  Link to article

Informative article from The Bell Policy Center on Colorado's background with payday lending:

"Payday loans disproportionately affect vulnerable Coloradans. This is particularly true for minority neighborhoods, which are home to more payday lending stores even after accounting for income, age, and gender..

In fact, the Center for Responsible Lending (CRL) finds areas with over 50 percent black and Latino residents are seven times more likely to have a payday store than predominantly white areas (less than 10 percent black and Latino).

The rates on payday loans are lower than those in other states and borrowers in Colorado save $40 million per year over what they paid under the old rules. However, these loans are still expensive, having an average effective interest rate of 129 percent in 2016...

'It is imperative that we act now to educate, engage, and empower our communities to fight for just lending. This means standing against unscrupulous payday lenders and preventing them from preying on our communities.' - Reverend Dr. Anne Rice-Jones, [Together Colorado Leader]."

Read the full article to find out what The Bell Policy Center and other consumer advocates propose for protecting Coloradans from predatory lending.