The voters of Colorado have expressed their displeasure with the payday lending industry as they approved significant regulations on Tuesday by a wide margin.
As of 9:30 p.m., Tuesday — and with 45 percent of the counties reporting —76.6 percent of the voters supported the measure with 23.4 percent voting against it.
The proposition will reduce the annual interest rate on payday loans to 36 percent and will eliminate all other finance charges and fees associated with payday lending.
Previously, the maximum charges allowed for payday loans were as follows:
• Up to 20 percent for the first $300 loaned;
• A charge of 7.5 percent for any amount loaned above $300;
• Monthly maintenance fee of up to $30 per month;
• An additional annual interest rate of 45 percent.
According to The Center for Responsible Lending, the average payday loan in 2016 was for $392 and cost customers an average of $119 in interest and fees — around 129 percent. More than 414,000 payday loans were issued in Colorado in 2016, totaling nearly $50 million in fees and interest payments.