Colorado HB 11-1290 alterations installment loans debate

Payday lenders and the Colorado economy as a whole felt the pain when Colorado HB 10-1351 passed, in accordance with state Rep. Larry Liston. In response to the controversial legislation, Colorado legislators have introduced HB 11-1290, which would fill the gap created when payday advance loans were banned by requiring a full payment of origination fees up front, rather than allowing for a pro-rated amount should the client pay off their short term installment loan early. Post resource – Colorado short term installment loans bill HB 11-1290 up for debate by MoneyBlogNewz.

This week, the Colorado House Bill 11-1290 might get to committee

Friday, Colorado House Bill 11-1290 was introduced. The Colorado Statesman explained that it may be debated soon. The installment loans origination fee of $20 per $100 loaned for the first $300 and $15 per $100 loaned for the next $200 up to a maximum of $500 loaned nets loan companies up to $75. In addition, a monthly maintenance of $7.50 per month per $100 and a finance charge of 45 percent could be charged in accordance with Colorado law.

Two-week payday advance loans are unlikely in Colorado now. Loan companies say the only way business can continue is if the full HB 11-1290 origination fee is charged.

Arguments between HB 11-1290 supporters and HB 10-1351 supporters

The legislation has 10 co-sponsors in the House, including Rep. Sue Schafer, D-Wheat Ridge, who voted "no" on HB 10-1351, also as Rep. Ed Casso, D-Commerce City, who favored HB 10-1351. Sen. Mary Hodge, D-Brighton, is another anti-HB-1351 person who sponsors the bill. Another is Sen. Louis Tochtrop, D-Adams County, in support.

Technical correction or incentive to re-borrow?

Supporters of Colorado House Bill 11-1290 maintain that the origination fee change is merely a technical correction to the provisions of last year’s HB 10-1351. Rich Jones of the Bell Policy Center disagree:

"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.

Information from

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