Consumer benefits from the new PDL law of Colorado
Date: Wed, 07/28/2010 - 04:10
Here’s a bit of interesting information which I thought of sharing with you.
The payday lending laws in Colorado is up for a complete overhaul and consumers may benefit from it. The state legislature of Colorado has passed a bill which states that from August 11, 2010 the interest rate on all payday loans will be capped at 45%. This is sure to bring joy among thousands of PDL borrowers. But, the legislature has added a twist as they’ll allow the payday lenders to charge additional fees.
The payday lenders of the state have opposed the overhaul and many big lenders have already decided to shut down their shops across the state.
Would you post a link to the information you located on this sub
Would you post a link to the information you located on this subject, I did a quick search of the CO AG website and couldn't find it, thanks!
Hi Shazzers, I came across this interesting little informatio
Hi Shazzers,
I came across this interesting little information in the below mentioned website. I thought it might help the community users. The following is the link to the website: "www.publicbroadcasting.net/kunc/news.newsmain/article/1/0/1680349/Regional/Rules.for.Payday.Lenders.to.Change.in.August"
You are idiots if you think Payday lending will still be an opti
You are idiots if you think Payday lending will still be an option at only 45% APR!!
Quote:Originally Posted by AnonymousYou are idiots if you think
Quote:
Originally Posted by Anonymous You are idiots if you think Payday lending will still be an option at only 45% APR!! |
This is correct, but not the right way to state it!!!
The only thing that will happen by the states creating these "rate cap" laws will be for the legal industry to dry up and go away. The result of thier dissappearance will not reduce the demand, but only drive it to the unlicensed lenders on the internet. I challenge anyone on this forum to take a few minutes and look at the number of threads regarding illegal lenders and compare the number to the amount about legal lenders. The comparison will show that the ratio is astonomical, one might guess 100 to 1 at a minium!!! Get ready for this board and other like it to blow up with complaint about IPDL's as the consumer will no longer have a "protected" option for short-term cash by legal lenders.
I realize that I might as well be speaking to the wall, but the opponents of the PDL industry would be better served by educating the consumer of the pitfalls of borrowing on the internet as opposed to eliminating a product that currently has regulations and is in demand.
I'm from Colorado and want a little bit of more info on the matt
I'm from Colorado and want a little bit of more info on the matter. I really liked that the Govt. has introduced this rule but what do they mean by stating that they'll allow PDL companies to charge 'additional fees'. It's like serving the same wine in a different glass!!!! Any thoughts from PDLOwner, Shazzers or Paul??????
They will allow origination fees, credit reporting fees, ect. T
They will allow origination fees, credit reporting fees, ect. They will not make up the lost revenue and will not save all of the storefronts, but will allow some to survive for awhile.