Payday loan bill done till '09

DENVER - Sponsors of a bill that would cap interest rates on payday loans withdrew their support Tuesday, saying it's been changed to protect lenders instead of borrowers.

The bill was passed by the House over strong opposition from payday loan companies, but changes made in the Senate have led the bill's sponsors to abandon it.

"It no longer protects hard-working Coloradans," said Senate President Peter Groff, D-Denver, one of the bill's sponsors.

HB1310 would have capped the interest rate lenders collect at 45 percent.

That provision remains, but the Senate version was changed to be tougher on borrowers, giving them only seven days to repay loans.

"(That) really defeated the purpose of the bill, which was to allow consumers to pay off their debt," said House sponsor Rep. Mark Ferrandino, D-Denver.

"They don't change their financial situation in one or two weeks. It takes a lot longer."

Ferrandino and Groff wanted borrowers to have 30 days to pay back loans, but that was changed in the Senate by Sen. Jennifer Veiga, D-Denver.

Ferrandino said he plans to bring the proposal back next year instead of trying to reach a compromise.

Payday loan firms said the original bill would have cut into profits so much that it would drive them out of Colorado.

Misty Medders, who runs the Fast Bucks branch at 1383 N. Academy Blvd., said Veiga's changes made the bill more palatable.

"I just wish they'd kill it forever instead of just for a year," Medders said.