Sunday, May 15, 2011

Changes to payday lending grid-locking Colorado

One amendment to the Colorado legislature’s last bill of the season is causing a significant amount of frustration. The annual rules bill that deals with much of the day-to-day operations of the state has a new, controversial amendment about payday loans. If the issue isn’t resolved today, the Colorado legislature will require a special session.

About the Colorado Senate Bill 78

Colorado Senate Bill 78 is an annual rules bill that was intended to create specific, enforceable rules for several of the bills passed over the last session. The Colorado U.S. Senate Bill 78 had 600 rules to address. They integrated anything from ski lift safety to medical marijuana dispensary licensing to school fire codes to waste disposal fees. U.S. Senate Republicans amended the bill to change payday lending laws in the state after it was passed by the House.

Payday lending changes in Colorado

Last year, the Colorado legislature made significant changes to payday lending laws in the state. The fees loan companies can charge were limited. Rates of interest were also capped. Short term loan origination fees were limited. They can only be $75. The Colorado House passed legislation to allow loan providers to keep the origination fees after lenders argued the rules were improper on this legislation. It was not passed in the senate. This is the issue. The debate started all over again after the Senate Republicans put the bill back onto the Rules Bill.

Change working class individuals can have to deal with

An agreement on Colorado Senate Bill 78 is anticipated for the House and Senate. If it cannot occur, a special session could be required. A special session of the legislature could cost working class individuals several thousand dollars per day. About $20,000 a day was paid for special sessions in Washington while New York sessions are $50,000 a day. The Colorado payday loan issue needs to be determined. Otherwise, Colorado taxpayers may lose thousands of dollars every day.

Citations

Komo News

komonews.com/news/local/120742604.html

Denver Post

denverpost.com/breakingnews/ci_18038290



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