Posted 10 months, 19 days ago in 
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If the intent of Colorado legislators is to eliminate payday lenders, then House Bill 1310 will accomplish this.
Capping the annual percentage rate at 45% allows a lender, for example, to only charge the consumer $1.74 for a $100 loan for 14 days. Lenders will not be able to cover their operating expenses on that amount, thus driving them out of business.
Personal testimony from consumers indicates the real problem is not the current fee structure, rather it is the cycle of re-borrowing and this was addressed in last year’s revision of the payday law. That law, House Bill 07-1261, allows consumers to break the cycle of re-borrowing by converting their payday loan into an installment loan. This law has only been in effect since July 1, 2007. It makes more sense to give this law adequate time to determine its efficacy before revising payday lending laws any further.
If House Bill 1310 passes in its present form, effectively shutting down payday lenders in Colorado, who will protect consumers who need these loans from the real predatory lenders? Loan sharks and the online payday lenders will flourish and operate unregulated making it difficult for the Attorney General’s office to control them.
LARRY S. ROBERTSON, owner
Colorado Check Exchange
Denver
One Response to “House Bill 1310 will eliminate payday lenders”
Posted February 23rd, 2008 at 3:53 pm Login to Send PM Report this comment
I am a paycheck loan employee and I understand that the bill wi,ll now go the senate floor. The bill will be ultimately designed to end payday lending in CO. I would like to say that first of all the term loan sharking and classifying us as such or saying that we are the new mob up hauls me (as noted by Represenative Mark Ferrandino). I am a hard working single mother, who knows the hardships of what people face and if you took the time to come to my office and meet with my clients you would see that this is no where near what you are labeling us (Paycheck Loan Lenders) as. (i.e. a predator, a loan shark,). However as usual no one has taken the time to go to a paycheck loan office and fully educate yourself on the process, the product, or the people that work at paycheck loan offices or the people who use the service.
Yes there are payday lenders out there that are bad, but it is up to the consumer to educate himself or herself before making the commitment. There is bad in every industry, just as there are bad representatives and politicians, but again it goes to be point of educating yourself. Just like those of you who are not fully knowledgeable about the payday loan industry, or care to educate yourself, you just assume that we are all bad people preying upon the poor. Again up hauling..!!!!!!
I work in Boulder, CO and all of my clients are grateful for the fact that I am here. Let me ask you this when their car breaks down or a family member needs to be rushed to the hospital, will you loan them the money? I have clients that are professors, nurses, and executives in companies far from the poor that you say we prey upon. I have laughed, cried, and become friends with most of my clients. I know their families and their struggles and they know mine. Tell me, when they can’t get a loan from their bank (who no one has addressed the issues regarding their hefty fees) and they have an emergency where are they supposed to go?
We do not feed upon the poor or the weak; we do not stand on corners and pull people in to get loans. I don’t have Guido in the back room waiting to break peoples legs if they don’t pay. In fact when people come in we make sure that they have no outstanding loans, before we will give them a new loan. If they have a loan with us and are unable or to make the payment we work them in helping arrange a reasonable payment plan in order for them to pay off their loan.
Why do you target us and not the banks that charge outrageous fees? Everyday I see people who are hit with hefty bank fees and no one seems to address that issue. Most of the time people that come in here are taking a loan because the bank has hit them with such fees. The other issue is that closing us down does not stop people in getting paycheck loans; they will simple turn to the Internet. Those are the true loan sharks, Internet lending is unregulated, and you have no control over your loan, most of the time you cannot get a hold of a real person, they don’t care if you can’t make the payment.
Here is a thought how about making sure that everyone has universal healthcare, so that they do not have to worry if they get sick how will they pay their bill? How about focusing on getting jobs back here in the US instead of outsourcing to India, or China. I know it is easier for you to target payday lenders and close them down and put more people including myself out of work and in turn we will lose our health insurance and benefits, oh yes that is better than addressing the real issues.
So let me thank you in advance for putting more than 1800 hardworking people out of work and leaving them without benefits, and by the way could I borrow some money please so that I can pay my bills?
Perhaps by reading this letter you will take the time to fully educate yourself. You are welcome to come to my office here in Boulder anytime and get a real grasp on what is going on instead of jumping on the bandwagon of ignorance. Oh I am sorry does that sound like I am judging all of you…………….
I urge you to vote no on HB-1310!!!!!!!!!!!!!!!!!
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