(Successful, hard-won reform – Promoted by Colorado Pols)
The latest numbers on payday lending in Colorado are in, and they show that consumers continue to benefit from reforms enacted in 2010.
In 2012, payday borrowers paid $36 million in fees for about 441,000 loans, according to the latest annual report from the Colorado Attorney General’s Office. That’s about $59 million less than they paid for 1.6 million loans in 2009, the last full year before reforms took effect. (Press release here.)
The average actual annual percentage rate on the loans in 2012 was 129.4 percent compared to 318.5 percent in 2009.
Colorado’s reforms established a six-month minimum loan term on payday loans, allowed them to be paid off early and changed the fees allowed on loans. It also required lenders to refund a portion of the fees if the loans were paid off early, based on the amount of time the loan was outstanding.
Critics said these reforms would put payday lenders out of business. However, the data shows that with 287 locations, these loans are still widely available in Colorado.
Key figures in the report include:
Average actual loan amount: $393.77
Average actual loan term: 98.9 days
Average actual finance charges: $120.62
Total payday lending locations: 287