Colorado Senate backs payday loan limits
April 30, 2010
DENVER (AP) – A bill limiting the terms of payday loans has narrowly passed a vote in the state Senate.
The Senate backed a new version of the bill late Thursday by one vote. It changes short-term payday loans into six-month loans.
Lenders would still be able to charge a $75 origination fee as well as monthly fees up to $30 and up to 45 percent in interest.
Democratic Sen. Rollie Heath said he offered the change from a version passed in the House to keep payday lenders in business. But some Democrats and Republicans said it would force lenders to close and layoff workers. They supported allowing fees of up to $60 a month.
Republican Sen. Al White said organized crime would step in to fill the need for emergency cash.