Colorado Voters Approve Initiative to Limit Interest Rates and Fees on Payday Loans

On November 6, 2018, Colorado voters passed Proposition 111, which caps the annual percentage rate (APR) on payday loans to 36%, inclusive of fees.  The changes made by Proposition 111 will go into effect on February 1, 2019.

Under current Colorado law, lenders are permitted to collect certain monthly fees and charge an annual interest rate of 45% on payday loans.  However, pursuant to Proposition 111, on and after February 1, 2019, lenders will only be permitted to charge an APR of up to 36% on payday loans in Colorado.

The text of the measure can be found here.