A vast majority of Colorado voters have supported a measure that limits the interest lenders can charge on payday loans in the state at 36 percent per year.
Proposition 111 won the support of more than 75 percent of Colorado voters in the 2018 election, according to results from the Secretary of State’s Office. Proponents had cast 1,272,491 votes in favor of the measure as of 9 p.m compared to just 389,585 from opponents.
Payday loans are typically $500 or less and can be obtained quickly with few requirements beyond having a job. They carry steep interest rates, but Proposition 111 would change that in Colorado by prohibiting lenders from charging an annual percentage rate (APR) of more than 36 percent.
Proponents say payday lenders take advantage of lower-income people facing financial emergencies. Current law allows Coloradans to be charged interest rates of more than 200 percent.
Opponents of Proposition 111 say payday loans provide an option to those with poor or insufficient credit, and a cap on interest rates could reduce some people’s access to quick loans.
