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New payday loan law is now in effect

COLORADO – Colorado’s new payday loans law is now in effect. Voters overwhelmingly backed Proposition 111 during the election last November. The loan interest rate for borrowers is now capped at 36-percent.  It also eliminates all other finance charges and fees associated with payday lending.

Proposition 111 – Payday Loans Cap

Yes 1,859,517 77%
No 547,608 23%

 

Currently in Colorado, when anyone wants to get a payday loan- they could face interest rates of about 200 percent on the high end. 15 states and the District of Columbia have enacted similar laws to cap payday loan interest rates.

Colorado Attorney General Phil Weiser says the move will protect the most vulnerable people in the state and that consumers who feel like they’re being taken advantage of by payday lenders should contact his office immediately.

Nia Bender

Nia Bender

Nia Bender is a digital content producer for KOAA News 5.
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