Chalk one up for the poverty industry

The Denver Post reports that the sponsors of Colorado House Bill 1310, which would have limited the fees that payday lenders could charge and capped interest rates at 45%, are withdrawing the bill. Sen. Peter Groff (D-Denver), who sponsored the bill in the state senate, says that the bill in its current form only makes matters worse for consumers.

The problem stems from amendments added by Sen. Jennifer Veiga (D-Denver), who appears to be a poverty industry stooge:

The coalition’s analysis showed the effective annual percentage rate for a two-week, $100 loan, including a $20 fee, would be 566 percent under the amended bill compared with 521 percent currently. Since the fees for subsequent loans were halved to $10 the effective APR for borrowing $200 would be 436 percent under the amended bill compared to 521 percent under current law. Veiga didn’t dispute the figures.

The bill in its current form is worse than useless, so Sen. Groff will ask the Senate Appropriations Committee to euthanize the amended bill today.

This bill generated some interesting discussion when first introduced. The Democrats were running around quoting scripture to anyone who would listen and talking about how usury is an abomination unto the Lord. Conversely, members of the G[od’s]O[wn]P[arty] abandoned religious rhetoric in favor of standard “consumer choice” drivel.

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