Payday Loans Still Growing In Colorado
Denver, CO — In 2004, the house passed a state law, HB 1394, allowing small installment loans in Colorado. The law was intended to allow select "supervised lenders" to make high interest loans that would compete with payday lenders.
The 2004 state law seems to have little impact on the fast growing cash advance and online payday loan industry.
Newly released 2004 data shows that payday loan locations, loans and dollars continued soaring in Colorado in 2004, all rising faster than they did in 2003, according to the Colorado Attorney General's Office.
The number of Colorado payday lending locations as of Dec. 31 rose 28 percent from one year ago, with 114 lenders operating 496 locations by the end of the year. The number of Colorado payday loans rose 22 percent to about 1.2 million, and the dollars loaned rose 26 percent to $367.5 million.