Colorado short term installment loans bill HB 11-1290 up for debate

Payday loan lenders and the Colorado economy as a whole felt the pain when Colorado HB 10-1351 passed, in accordance with state Rep. Liston. In response to the controversial legislation, Colorado legislators have introduced HB 11-1290, which would fill the gap created when pay day loans were banned by requiring a full payment of origination fees up front, rather than allowing for a pro-rated amount should the client pay off their installment loan early. Article resource – Colorado short term installment loans bill HB 11-1290 up for debate by MoneyBlogNewz.

Getting Colorado House Bill 11-1290 to the committee

Introduced Friday on the floor of the legislature, Colorado House Bill 11-1290 might be debated as early as this week, reports the Colorado Statesman. The lender can make up to $75 on a maximum of $500 loaned after an short term installment loan origination fee of $20 for every $100 loaned up to $300 and $15 for every $100 loaned after that. In addition, a monthly maintenance of $7.50 per month per $100 and a finance charge of 45 percent can be charged according to Colorado law.

Loan providers suggest the full origination fee that HB 11-1290 supports is needed to continue business while Colorado loan providers cannot any longer do two-week payday advance loans.

HB 11-1290 sponsors predominantly voted against HB 10-1351

The legislation has 10 co-sponsors in the House, including Rep. Sue Schafer, D-Wheat Ridge, who voted "no" on HB 10-1351, also as Rep. Ed Casso, D-Commerce City, who favored HB 10-1351. U.S. Senate sponsors contain other anti-HB-1351 legislators for instance Sen. Mary Hodge, D-Brighton, and Sen. Lois Tochtrop, D-Adams County.

Said it is a technical correction

There are many Colorado supporters of House Bill 11-1290. They say that last year's HB 10-1351 is being corrected technically with the bill and origination fees. Rich Jones of the Bell Policy Center disagree:

"It’s an incentive for the lenders to get customers to pay off their loans early and then take out more loans," Jones told the Statesman Friday.

Articles cited

DORA

dora.state.co.us/Financial-Services/pdf_forms/Revised HB10-1351_2.pdf

State Bill Info

statebillinfo.com/bills/bills/11/1290_01.pdf

Colorado Statesman

coloradostatesman.com/content/992687-payday-lender-bill-being-fast-tracked-through-house

‘Steering Colorado’s economy back on course’

youtube.com/watch?v=3mHOl-S6F1s