AG’s Udis sides with consumers in payday rulemaking
Tuesday, August 31, 2010 at 5:32 pm
DENVER — After four hours of testimony and deliberation in the old Supreme Court chambers of the state Capitol, First Assistant Attorney General Laura Udis decided to reverse her proposed payday lending rules and effectively reinsert consumer protections which she said are more in line with the spirit of the law passed last legislative session.
Payday lenders will now be forced to refund so-called origination or acquisition fees up to $75 when borrowers repay loans.
“I feel so listened to right now; I feel ecstatic,” said Corrine Fowler, Economic Justice Director for the Colorado Progressive Coalition, which helped draft House Bill 1351 with Denver Democratic state Rep. Mark Ferrandino last session. “I think Laura Udis should be thanked for her fairness and for listening and adhering to the legislative intent and to the bill’s sponsors.”
The bill’s sponsors were concerned that the proposed rules written in July by Udis provided a loophole in effect that would move the industry to craft loan products and strategies that would steer consumers to take out new loans, by for example lowering interest rates in order to collect repeat origination fees.