Colorado payday loan limits measure passing easily
Voters back 36 percent maximum annual percentage rate for payday loans
Although Colorado Proposition 111, limiting payday loan rates, did not garner anywhere near the attention as some of the bigger statewide ballot initiatives, it does appear to be earning voter approval.
Proposition 111 places interest rate limits on payday loan services.
As of 9 p.m., roughly 77 percent of voters supported the proposition, while 23 percent did not.
Currently, the industry adheres to a fee structure, which allows lenders to first charge an origination fee of up to 20 percent on the first $300 borrowed and an additional 7.5 percent on any amount over that.
Lenders could also charge customers a 45 percent interest rate per year per loan.
Proposition 111 will do away with the current fee structure and instead implement a maximum annual percentage rate of 36 percent on the payday loan industry.
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“An additional round might force the candidates to base their platforms on hard facts and research, not simply what they believe the public wants to hear,” -Rick Voorhees, Glenwood Springs City Councilor