We stand up to protect consumers against predatory lending models and products. For example, despite significant gains in the past decade — won in-part thanks to efforts by this Coalition — payday loans continue to strip close to $50 million from Coloradans each year.
The average borrower pays $119 in fees to borrow $392. Payday loan servicers disproportionately target people of color and service members. They trap many families in cycles of debt, undermining their potential to build self-sufficiency.
Colorado consumers are also at risk of predatory business models from larger installment loans, student loans, auto loans, and home loans. Our efforts help insure fair access to wealth-building credit and loans for all Coloradans.
Our working group seeks to:
- Cap payday loan interest rates at 36%
- Defeat efforts to hike interest rates, add unnecessary fees and expenses, or place additional cost-burdening loopholes on Colorado’s poorest borrowers
- Investigate new predatory lending models emerging in the auto lending world
- Defend the Consumer Financial Protection Bureau (CFPB)
- Ensure Coloradans know their rights and responsibilities in the marketplace so they avoid dangerous debt traps