Colorado Proposition 111, Limitations on Cash Advance Charges Initiative

Colorado Proposition 111, Limitations on Cash Advance Charges Initiative

  • On line enrollment: Yes
  • Same-day enrollment: Yes
  • Voter ID: Non-photo ID required for in-person voting
  • Poll times: 7:00 a.m. to 7:00 p.m.


Colorado Proposition 111
Election date November 6, 2018
Topic Banking
reputation a Approved
Type State statute Origin people

Colorado Proposition 111, the restrictions on pay day loan Charges Initiative, ended up being regarding the ballot in Colorado being an initiated state statute on November 6, 2018. It had been authorized.

A yes vote supported the effort to lessen the interest that is annual on pay day loans to a yearly price of 36 % and eradicate all the finance fees and costs connected with payday lending.
A no vote opposed the effort to cut back the interest that is annual on pay day loans to an annual price of 36 % and expel all the other finance fees and charges related to payday financing.


  • 1 Election results
  • 2 Overview
    • 2.1 exactly just exactly What did this measure do?
    • 2.2 Who had been behind the promotions surrounding Proposition 111?
  • 3 Text of measure
    • 3.1 Ballot title
    • 3.2 Overview and analysis
    • 3.3 Comprehensive text
    • 3.4 Readability rating
  • 4 Help
    • 4.1 Supporters
      • 4.1.1 Businesses
      • 4.1.2 Officials
    • 4.2 Arguments
      • 4.2.1 formal arguments
  • 5 Opposition
    • 5.1 Opponents
    • 5.2 Arguments
      • 5.2.1 certified arguments
  • 6 Media editorials
    • 6.1 Support
    • 6.2 Opposition
  • 7 Polls
  • 8 Campaign finance
    • 8.1 Help
      • 8.1.1 Donors
    • 8.2 Opposition
    • 8.3 Methodology
  • 9 Background
    • 9.1 pay day loans
    • 9.2 appropriate status of payday lending by state
  • 10 road to the ballot
    • 10.1 the continuing state procedure
    • 10.2 Information regarding this initiative
  • 11 just how to throw a vote
    • 11.1 Poll times
    • 11.2 Registration demands
    • 11.3 Automatic enrollment
    • 11.4 on line registration
    • 11.5 registration that is same-day
    • 11.6 Residency demands
    • 11.7 Verification of citizenship
    • 11.8 confirming your enrollment
    • 11.9 Voter ID requirements
      • 11.9.1 Background
  • 12 See also
  • 13 External links
    • 13.1 Help
    • 13.2 Opposition
  • 14 Footnotes

Election results

Colorado Proposition 111

Outcome Votes Percentage
No 549,357 22.75percent

email address details are formally certified. Supply


exactly just What did this measure do?

Proposition 111 ended up being built to reduce steadily the interest on quick term loans—commonly referred to as payday loans—to a annual price of 36 % and eliminated all the other finance charges and charges related to payday financing. The initiative had been built to just just take influence on February 1, 2019. 3 4 5 6

Going in to the election, the utmost costs allowed for payday advances had been the following: 4 6

  • a cost as much as 20 per cent for the first $300 loaned,
  • a cost of 7.5 per cent for almost any quantity loaned above $300,
  • month-to-month maintenance cost as much as $30 per easy payday loans Mississippi online thirty days, and
  • an extra yearly rate of interest of 45 per cent.

Who had been behind the promotions surrounding Proposition 111?

Ballotpedia identified one committee registered to get the measure: Coloradans to quit Predatory pay day loans. The committee reported efforts of $2.19 million and expenses totaling $2.26 million. The biggest donor ended up being the Sixteen Thirty Fund, which offered $2.08 million. 7

One committee ended up being registered to oppose the measure— the continuing State Ballot Issue Committee— which hadn’t reported any campaign finance task.

Text of measure

Ballot name

The ballot name with this effort had been as follows: 3

Shall there be an amendment towards the Colorado Revised Statutes concerning restrictions on payday lenders, and, in connection therewith, reducing allowable charges on pay day loans to a percentage that is annual of a maximum of thirty-six %? 8

Summary and analysis

The analysis and summary given to this measure when you look at the Colorado 2018 Blue Book was the following: 9

History. Pay day loans are small, easy-to-access short-term loans that don’t require a credit check. In 2016, about 207,000 people in Colorado secured over 414,000 loans that are payday. These loans totaled over $166 million, and customers paid an expected $50 million in loan expenses (any mixture of charges and interest), by having a standard price of 23 %. The Department of Law licenses and establishes guidelines for payday lenders and conducts conformity exams of the loans. The division additionally investigates and litigates instances involving payday lenders.

Apr (APR). The APR could be the total loan expense indicated as a yearly rate and includes the attention from the loan quantity, origination charges, and month-to-month upkeep costs. The APR differs for a basis that is daily, due to the method upkeep charges are organized in Colorado, tends to increase on the lifetime of the mortgage. In 2016, the APR that is average pay day loans in Colorado ended up being 129 per cent.

The initial two waves of this CPS data span three loan that is payday: Arizona, Montana, and brand brand New Hampshire

The CPS asks participants not only about use of AFS but also about their reasons for using these forms of credit unlike many other data sets used to report patterns of borrowing behavior. Individuals who reported making use of pay day loans into the previous 12 months had been expected why they decided to make use of these loans in the place of a bank loan that is traditional. a comparable concern ended up being expected of pawnshop users. In addition, clients whom reported utilizing any AFS credit item into the past 12 months had been expected about the objective of the loan.

To research the effect of pay day loan bans on old-fashioned types of credit, we use information through the Federal Reserve Bank of the latest York’s customer Credit Panel/Equifax

The CCP is just a nationally representative longitudinal database with step-by-step information on personal debt, obtained quarterly and produced by consumers’ credit records maintained by Equifax, certainly one of the nation’s three major credit reporting agencies. We make use of 5 % test regarding the CCP information, corresponding to a .25 % test for the populace. Quarterly information on specific charge card, retail card, and customer finance loan balances can be obtained from 2006 to 2012, yielding an example of 6 million person-quarters. 12

Both the CPS and also the CCP data include details about participants’ demographic characteristics. The demographic information within the CPS correspond to your household’s meeting guide individual and can include their sex, battle, training, marital status, earnings, and work. Even though the CCP just contains information regarding the consumer’s age, people in that information set is connected with time, which allows making use of specific effects that are fixed. Both data sets have details about individuals’ location of residence, which is often utilized to connect all of them with information about neighborhood conditions that are economic. Information on genuine state earnings per capita come from the Bureau of Economic research, and information on jobless prices come from the Bureau of Labor Statistics.

No bans that are new introduced amongst the 2nd and 3rd waves regarding the CPS. The CCP data span four loan that is payday: the 3 included in the CPS as well as the ban adopted by Washington, DC.

Empirical Analysis

We examine the result regarding the current loan that is payday described in Section 4 using data collected prior to and after the insurance policy modifications to compare borrowing behavior in states that changed their cash advance laws plus in states that would not. Because our analysis includes state fixed impacts, our predicted coefficients are identified from variations in alterations in borrowing behavior amongst the two sets of states.

Overview Statistics

Utilization of Alternative Financial Solutions

dining dining Table 1 reports descriptive data in the usage of alternate services that are financial the CPS information. Overall, 11.7 per cent utilized at the least one of several three AFS credit items, as well as a predicted 4.1 per cent associated with populace ever utilized a pay day loan. Comparing the second amount into the small fraction of this populace whom report making use of a quick payday loan in the this past year shows that over half the people who had used a quick payday loan did therefore sooner or later through the past 12 months. The same percentage of individuals utilized either pawnshops or rent-to-own solutions into the previous 12 months. Overall, 5.7 per cent of participants utilized one of many AFS credit items into the year that is past.

Usage of Alternative Financial Solutions (AFS) Credit Items

dining dining Table 2 compares the faculties of an individual whom utilized AFS credit items throughout the year that is previous other study individuals. In accordance with the population that is general users of AFS credit are more inclined to be feminine, solitary, black colored, and young. These demographic habits are broadly comparable across users of various forms of AFS credit items. Users of AFS items are additionally almost certainly going to be socioeconomically disadvantaged with regards to earnings, training, and employment status; nevertheless, these faculties differ throughout the variety of item used. Pay day loan users, while still economically disadvantaged in comparison to people who don’t use AFS credit services and products, have actually greater incomes than rent-to-own or pawnshop users and generally are less inclined to be unemployed. It is most likely because of the undeniable fact that pay day loan clients have to show evidence of work to have that loan. 13

Demographic traits by utilization of Alternative Financial solutions (AFS) Credit items

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