News & Resources

Short term lenders push fee acquisition bill to senate

Apr 30, 2011 Brian Bradley

The Durango Herald reports that a bill that will benefit short term lenders' acquisition fee was approved and elevated to the senate last month. HR House Bill 1290 passed 36-27, and allows lenders to keep their full up-front fees of up to $75, no matter how quickly a borrower pays back a loan, the news source explains. "There’s a lot of good folks that want to be able to use these types of loans," Larry Liston, Colorado Springs, Colorado Republican representative, told the media outlet. "It’s a fair, legitimate, legal business." High interest lenders took a hit last year when new regulations passed, which lowered interest rates and increased the minimum term of a loan to six months, up from a typical two weeks, to give borrowers more time to pay off their debts. Republican David Balmer tells The Colorado Times that HB 1290 will help keep short-term lenders in business so that people are not pushed toward loan sharks who use unscrupulous measures to guarantee high returns. Liston further commented to the news source that since the implementation of the new regulations, close to 140 cash advance stores succumbed to closures, which cost Colorado close to 500 jobs.