Fact check: Does Colorado legislation enable payday loan providers to charge over 200% interest on tiny loans?
A Colorado team campaigning to restrict costs for whatever they call pay day loans claims that “current legislation permits payday loan providers to charge a lot more than 200% interest for little loans directed at customers that are usually in serious straits.” 1 The claim is in help of Proposition 111, a Colorado ballot measure to cap yearly finance costs at 36 % for small-dollar loans. 2
May be the claim because of the group Stop Predatory payday advances valid? Does law that is current payday lenders to charge a lot more than 200 % interest for little loans?
No, the claim is inaccurate.