Colorado Democrats split over payday borrowing services as consumer groups raise concerns

Why Democrats, consumer groups are at odds over Colorado payday borrowing

PROGRAMMING NOTE: There will be no Unaffiliated on Friday. See you back here on Tuesday! An ACE Cash Express branch in Denver’s Baker neighborhood on Oct. 21, 2018. ACE provides payday loans. (Jesse Paul, The Colorado Sun) A bipartisan effort to legalize and regulate so-called “earned wage access” services in Colorado has raised alarm from consumer protection advocates who say the products are a lot like payday loans under a new name. Earned wag…

House Bill 1020 Aims to Regulate Earned Wage Access Services in Colorado, but Faces Opposition From Consumer Groups

House Bill 1020 aims to regulate earned wage access (EWA) services in Colorado, providing low-income workers with immediate access to earned income. However, consumer groups like the Bell Policy Center oppose it, fearing it could lead to predatory lending practices similar to payday loans. They worry about high fees trapping workers in debt cycles. Supporters argue it offers financial flexibility. If you're curious about the details and implicat…