Colorado voters will determine Proposition 111, a measure that could cap the total amount of interest and charges charged by the cash advance industry. (Picture: AP)

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With payday loan providers who promise quick money in a pinch, numerous Coloradans find on their own with high-interest-rate loans and a period of financial obligation from where they cannot escape.

Proposition 111 from the Nov. 6 ballot would cap the yearly rate of interest on pay day loans at 36 % and eradicate other finance charges and costs. If passed away, the legislation will need impact Feb. 1.

Colorado’s payday lenders can charge more than legally 200 % interest for many loans “targeted at clients that are frequently in dire straits,” in line with the “Yes On proposition 111” campaign’s internet site.

Colorado would join 15 other states, plus Washington, D.C., in capping prices at 36 % or less.

The buyer Financial Protection Bureau describes payday advances as short-term, tiny loans which are paid back in a payment that is single aren’t centered on a debtor’s capacity to repay the mortgage.

Payday loan providers simply simply take $50 million per year from financially-strapped Coloradans, according the the Center for Responsible Lending, which can be supporting Proposition 111. Read More