Fact check: Does Colorado law enable payday loan providers to charge over 200% interest on tiny loans?

Fact check: Does Colorado law enable payday loan providers to charge over 200% interest on tiny loans?

A Colorado team campaigning to restrict prices for whatever they call pay day loans claims that “current legislation enables payday loan providers to charge significantly more than 200% interest for tiny loans geared towards clients who’re usually in serious straits.” 1 The claim is in help of Proposition 111, a Colorado ballot measure to cap finance that is annual at 36 per cent for small-dollar loans. 2

May be the claim because of the combined group avoid Predatory payday advances valid? Does current law enable payday loan providers to charge a lot more than 200 % interest for tiny loans? Read more