Lobbyists for the subprime lending industry sneaked in a last-minute bill to allow huge interest rate increases on certain personal loans. The Colorado Attorney General’s office estimates that this legislation could mean increases of almost 40% to the total cost of a personal loan.
There was no opportunity to properly debate this legislation--and that was by design. This bill to allow lenders to hike interest rates on personal loans was passed by both chambers in less than a week with almost no debate. Some lawmakers have already expressed regret over their rushed vote for this legislation.
Loan sharks don’t need to jack up interest rates to “stay in business.” In 2013, the last year for which data is available, lenders booked tens of thousands of loans of the type House Bill 1390 would affect, worth almost $250 million dollars. Lobbyists for large financial corporations like Citigroup pushed this legislation for the sole purpose of enriching their clients--at the expense of Colorado’s middle class families who need access to credit.
We respectfully request a VETO of House Bill 15-1390.