Predatory Lending

CUA’s work in the area of predatory lending (including mortgage lending and payday lending) also spans many years.

In this area, our advocacy goals are for consumers to be:

• Protected from hidden fees, high finance charges, prepayment penalties, or balloon payments
• Protected from fraud

Mortgage Lending

In 2002, CUA worked with a coalition of organizations representing over 2 million Coloradans seeking to pass legislation to protect consumers from predatory mortgage lending. The coalition presented Senate Bill 73, which was model legislation that had been successful at significantly reducing predatory mortgage lending in other states. The bill did not pass into law. Instead, another bill that offered much less protection did pass. Had SB 73 passed, Colorado’s consumers would have been protected from the types of loans that have been the focus of the current economic problems in our country.

Since 2002, other types of legislation that apply to predatory lending have been geared toward regulating mortgage brokers and limiting mortgage fraud.

The following is further history on predatory mortgage lending related legislation.

• 2006
• 2007
• 2009

Payday Lending

CUA’s advocacy effort in the predatory lending category also includes payday lending. In this area, our advocacy goals are to:

• Ensure that all consumers have access to alternatives to Payday loans
• Protect consumers who use payday lending from exorbitant fees and interest rates
• Ensure that consumers who use payday loans can afford to repay those loans rather than re-borrowing

The following is further history on payday lending related legislation:

• 2004
• 2007
• 2008