Colorado installment loans bill HB 11-1290 up for debate

Payday loan lenders and the Colorado economy as a whole felt the pain when Colorado HB 10-1351 passed, in accordance with state Rep. Larry Liston. To help preserve the payday lending business in Colorado and keep jobs in the state, counter-legislation (HB 11-1290) has been proposed, which would require consumers to pay the full origination fee for installment loans up front. This is vital, because HB 10-1351 had already run two-week payday loans out of the state. Post resource – Colorado installment loans bill HB 11-1290 up for debate by MoneyBlogNewz.

Getting Colorado House Bill 11-1290 to the committee

Friday, Colorado House Bill 11-1290 was introduced. The Colorado Statesman explained that it might be debated soon. The idea is to have a $20 fee for every $100 loaned up to $300 and $15 for every $100 loaned up to $500 total that can be loaned. A lender can only make $75 total in this arrangement. Colorado law allowed a monthly maintenance fee of $7.50 a month for every $100 lent and a finance charge of 45 percent.

Loan companies suggest that the full origination fee that HB 11-1290 supports is needed to continue business while Colorado loan providers can no longer do two-week payday advance loans.

Not many support both HB 11-1290 and HB 10-1351

HB 10-1351 was something Rep. Sue Schafer, D-Wheat Ridge, voted "no" on while Rep. Ed Casso, D-Commerce City, was in favor of HB 10-1351. Both are included in the sponsors of the legislature in the House. U.S. Senate sponsors consist of other anti-HB-1351 legislators such as Sen. Mary Hodge, D-Brighton, and Sen. Lois Tochtrop, D-Adams County.

Is it really a correction?

The origination is just a technical correction to HB 10-1351 in accordance with House Bill 11-1290 supporters in Colorado. Bell Policy Center's Rich Jones doesn’t agree. He claims:

"It’s an incentive for the lenders to get customers to pay off their loans early and then take out more loans," Jones told the Statesman Friday.

Citations

DORA

dora.state.co.us/Financial-Services/pdf_forms/Revised HB10-1351_2.pdf

State Bill Info

statebillinfo.com/bills/bills/11/1290_01.pdf

Colorado Statesman

coloradostatesman.com/content/992687-payday-lender-bill-being-fast-tracked-through-house

‘Steering Colorado’s economy back on course’

youtube.com/watch?v=3mHOl-S6F1s