Cash Pay Advance

A bill that targets the payday lending industry got preliminary approval from the Colorado House of Representatives on Friday after an intense, mostly party-line debate. Payday loans are short-term loans on small amounts of money — typically $300 to $500 — that are intended to be paid back after the borrower's next paycheck. Mark Ferrandino, D-Denver, would cap annual interest rates on payday loans at 45 percent and allow lenders to charge no more than a one-time $60 finance fee per 12 months on all payday loans. Opponents of the bill said the legislation could put payday lenders out of business in Colorado, effectively giving those in dire financial straits no recourse. Another payday lending-oriented proposal moving through the General Assembly, House Bill 1126, requires lenders to offer a payment plan to customers taking out their fourth loan. Find Out More

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