Colorado Attorney General Phil Weiser is among state prosecutors urging the Trump administrative to enact new protections for those who take out payday loans.
He is is one of 25 attorneys general who signed a letter this week urging the administration's Consumer Financial Protection Bureau to stop postponing safeguards for debtors.
Those who take out the expensive short-term loans often have poor credit histories that sometimes result in spiraling compound debt from high interest rates.
The new regulation would "make sure they (debtors) have the ability to repay loans while also forbidding lenders from using abusive tactics when looking for repayment," Weiser's office said in a press release.
To read the letter, click here.
The rule was supposed to go into effect last year, but enforcement was postponed until Aug. 19, 2019, then more recently to Nov. 19, 2020, while the bureau considers revising the rule.
“We must protect borrowers in Colorado and the rest of the country from unfair, predatory payday lending practices," Weiser said in a statement. "The CFPB is proposing to delay the ability-to-repay provision without an adequate justification.
"It is critical that the CFPB protect American consumers by holding payday lenders accountable and protecting vulnerable borrowers from spiraling costs and inevitable default.”
Colorado voters capped the interest rate on payday loans at 36 percent last November. Before that, the average interest rate on payday loans in Colorado was 129 percent, Weiser's office said.
Weiser signed the letter with prosecutors from California, Connecticut, Delaware, the District of Columbia, Hawaii, Iowa, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New Mexico, Nevada, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, Wisconsin and Washington.