Payday loans in Colorado are capped at $500 paid back over a maximum of 6 months. In addition to fees, lenders may currently charge an annual interest rate of 45%.
In 2010 the state legislature curbed excessive payday loan charges, but in 2016 the average annual percentage rate (APR) on payday loans in Colorado in 2016 was still 129 percent. The APR is the total loan cost, including interest and all fees, expressed as a yearly rate. Prop 111 would limit the APR on payday loans to 36 percent, a drastic reduction from the current average APR.
Congress limits the interest rate on payday loans to active-duty military. The Military Annual Percentage Rate (MAPR) is 36% with some exceptions so active-duty military in Colorado are already benefiting from the 36% APR maximum.
Recommendation: YES/FOR
Opponents argue that the state should not regulate payday loans and/or that, under Prop 111, payday loan businesses will leave Colorado, eliminating an important, well-regulated source of short-term credit. Their argument is refuted by the actions of Congress and the 15 states and the District of Columbia that have capped rates at 36%. In Arizona, Montana, Ohio and South Dakota, voters at the ballot box approved the caps.
In our TABOR-constrained state, we are often voting on whether or not to raise taxes. With Prop 111 we have the opportunity to help those with financial challenges without raising taxes. Prop 111 is a hand-up, not a hand-out.
Website for the Yes Side – Coloradans to Stop Predatory Payday Loans
https://www.stoppredatorypaydayloans.org/
Website for the No Side
No known website – Info on an opponents’ website appreciated.
Approved Ballot Language
Proposition 111 (STATUTORY)
Shall there be an amendment to the Colorado Revised Statutes concerning limitations on payday lenders, and, in connection therewith, reducing allowable charges on payday loans to an annual percentage rate of no more than thirty-six percent?
YES/FOR _______
NO/AGAINST _________
Prop 111 initiative language filed with the Secretary of State
http://www.sos.state.co.us/pubs/elections/Initiatives/titleBoard/filings/2017-2018/126Final.pdf
In 2010 the state legislature curbed excessive payday loan charges, but in 2016 the average annual percentage rate (APR) on payday loans in Colorado in 2016 was still 129 percent. The APR is the total loan cost, including interest and all fees, expressed as a yearly rate. Prop 111 would limit the APR on payday loans to 36 percent, a drastic reduction from the current average APR.
Congress limits the interest rate on payday loans to active-duty military. The Military Annual Percentage Rate (MAPR) is 36% with some exceptions so active-duty military in Colorado are already benefiting from the 36% APR maximum.
Recommendation: YES/FOR
Opponents argue that the state should not regulate payday loans and/or that, under Prop 111, payday loan businesses will leave Colorado, eliminating an important, well-regulated source of short-term credit. Their argument is refuted by the actions of Congress and the 15 states and the District of Columbia that have capped rates at 36%. In Arizona, Montana, Ohio and South Dakota, voters at the ballot box approved the caps.
In our TABOR-constrained state, we are often voting on whether or not to raise taxes. With Prop 111 we have the opportunity to help those with financial challenges without raising taxes. Prop 111 is a hand-up, not a hand-out.
Website for the Yes Side – Coloradans to Stop Predatory Payday Loans
https://www.stoppredatorypaydayloans.org/
Website for the No Side
No known website – Info on an opponents’ website appreciated.
Approved Ballot Language
Proposition 111 (STATUTORY)
Shall there be an amendment to the Colorado Revised Statutes concerning limitations on payday lenders, and, in connection therewith, reducing allowable charges on payday loans to an annual percentage rate of no more than thirty-six percent?
YES/FOR _______
NO/AGAINST _________
Prop 111 initiative language filed with the Secretary of State
http://www.sos.state.co.us/pubs/elections/Initiatives/titleBoard/filings/2017-2018/126Final.pdf
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