Pay Day Loans are Capped at 36%

Pay Day Loans, loans of $500 or less, will have interest rates capped at 36 percent under a new law taking effect on February 1st. Back in November, Colorado voters approved a ballot proposition to set that cap. Many pay day loans trapped low income people in a cycle of debt and charged compound interest rates above 100 percent. State Attorney General Phil Weiser says he will enforce the new law and urged citizens to report any pay day loan operation that is in violation of the 36 percent cap. Meanwhile, the Financial Equity Coalition is working to offer people alternatives to pay day loans. It has listed resources and other loan programs on its website http://financialequity.org/consumer-resources.

Pay Day Loans

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