Topic: I Need A Payday Loan But I Have Other Outstanding Loans - Rough go for payday bill - Rocky Mountain News
It would set the minimum term of a payday loan at 30 days and also would bar payday lenders from “knowingly” issuing a loan to someone they know has another payday loan outstanding. As the payday lending industry engages in a significant lobbying effort, the bill’s opponents suggest that setting the cap could kill the industry and leave payday customers with no other borrowing options. Few try to cast the payday loan fees in terms of an APR of roughly 30 percent to 40 percent. Industry data from the attorney general’s office show high delinquency rates for payday loans in comparison with traditional lenders. Debbie Benefield, R-Arvada, sponsored a payday-lending bill last session that gives borrowers an option of rolling over their fourth consecutive payday loan into a no-interest, no-fee loan of no fewer than six payments. House Bill 1310 limits the effective annual interest rate on a deferred-deposit, or “payday” loan, to 45 percent. Learn more
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