Colorado Bill To Hike Interest Rates On Small Loans Vetoed
DENVER (AP) - Gov. John Hickenlooper vetoed legislation that would've increased interest rates on small loans mainly given to people with bad credit.
The bill passed during the final days of the legislative session that concluded last month. Hickenlooper said in his veto message Thursday that the bill moved quickly and without full consideration of all its impacts.
The bill would've raised interest rates from 21 percent to 36 percent for loans between $1,000 and $3,000. For loans between $3,000 and $5,000, the interest rate would've increased from 15 percent to 21 percent.
Specialty loan companies, not banks, handle the loans in question.
Supporters of the bill pushed the proposal saying interest rates for the loans haven't been adjusted in 15 years. But Hickenlooper says it's not clear the suggested increases were appropriate.
LINK: House Bill 1390
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