COPA is a part of the coalition working to pass Proposition 111 to put an end to predatory lending in Colorado. Under current law, payday loans are exempted from Colorado’s 36% interest rate cap, so the annual percentage rate (APR) can be more than 200%. When the loan is due, most borrowers simply don’t have enough money to pay back the loan, plus the interest, which means hardworking Colorado families end up trapped in a cycle of debt. Payday loans suck more than $50 million a year out of our state preying on financial hardships and preying on low-income and communities of color.
Current law allows payday lenders to charge more than 200% interest for small loans. Proposition 111 caps interest rates and eliminates fees on payday loans, ending the outrageous interest rates that trap working families in a cycle of debt.