Colorado Proposition 111, Limits on Payday Loans, Has Passed

November 7, 2018
Photo: Payday Loan Storefront - APNati Harnik/AP Photo
In this Friday, Feb. 17, 2017 photo, an unidentified person leaves the EZ Money Check Cashing storefront in Omaha, Neb.

Voters approved Proposition 111, which will reduce and cap the annual percentage rate a payday lender could charge, and expand what constitutes unfair or deceptive trade practices. The measure is statutory, meaning it needed a simple majority to pass.

Colorado Election Results

 

The measure limits interest rates to 36 percent and prevents lenders from adding origination and monthly maintenance fees. In 2016, the average annual percentage rate on payday loans in Colorado was 129 percent.

Proponents for the measure argued people are paying too much for small loans, and can end up borrowing money to pay off existing loans—digging themselves into a financial hole. Opponents said the measure could eliminate the payday lending business in the state entirely, which they say is an important option for those who don't qualify for more traditional types of credit.

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