Backers say Colorado payday loan limits working
DENVER (AP) — A report from Attorney General John Suthers says a law cracking down on the payday lending industry saved Coloradans nearly $100 million last year.
A new law limits the term of payday loans from about two weeks to a minimum of six months. Backers say that gives borrowers some breathing room and makes it harder for payday lenders to pile on debt.
Backers say the report also counted 330 licensed payday lending locations in Colorado at the end of 2011, contradicting claims by payday lenders that the 2010 law would put the industry out of business.