Colorado Proposition 111, Limits on Payday Loan Charges Initiative (2018)

Elections in Colorado, 2018

• General election: Nov. 6
• Voter registration deadline: Oct. 29
• Early voting: Mail ballots available Oct. 5
• Absentee voting deadline: Nov. 6

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

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Colorado Proposition 111
Election date November 6, 2018
Topic Banking
Status a Approved
Type State statute	Origin Citizens
List of Colorado measuresColorado Amendment AColorado Amendment VColorado Amendment WColorado Amendment XColorado Amendment YColorado Amendment ZColorado Amendment 73Colorado Amendment 74Colorado Amendment 75Colorado Proposition 109Colorado Proposition 110Colorado Proposition 111Colorado Proposition 112Submit

Colorado Proposition 111, the Limits on Payday Loan Charges Initiative, was on the ballot in Colorado as an initiated state statute on November 6, 2018. It was approved.

A yes vote supported the initiative to reduce the annual interest rate on payday loans to a yearly rate of 36 percent and eliminate all other finance charges and fees associated with payday lending.

A no vote opposed the initiative to reduce the annual interest rate on payday loans to a yearly rate of 36 percent and eliminate all other finance charges and fees associated with payday lending.

Election results

Colorado Proposition 111
Result		Votes	Percentage
Yes		1,865,200	77.25%
No		549,357	22.75%

Results are officially certified.

Source

Overview

What did this measure do?

Proposition 111 was designed to reduce the interest rate on short term loans—commonly known as payday loans—to a yearly rate of 36 percent and eliminated all other finance charges and fees associated with payday lending. The initiative was designed to take effect on February 1, 2019.

Going into the election, the maximum charges allowed for payday loans were as follows:

• a charge of up to 20 percent of the first $300 loaned,
• a charge of 7.5 percent for any amount loaned above $300,
• monthly maintenance fee up to $30 per month, and
• an additional annual interest rate of 45 percent.

Who was behind the campaigns surrounding Proposition 111?

Ballotpedia identified one committee registered in support of the measure: Coloradans to Stop Predatory Payday Loans. The committee reported contributions of $2.19 million and expenditures totaling $2.26 million. The largest donor was the Sixteen Thirty Fund, which gave $2.08 million.

One committee was registered to oppose the measure— the State Ballot Issue Committee— which had not reported any campaign finance activity.

Text of measure

Ballot title

The ballot title for this initiative was as follows:

“

Shall there be an amendment to the Colorado Revised Statutes concerning limitations on payday lenders, and, in connection therewith, reducing allowable charges on payday loans to an annual percentage rate of no more than thirty-six percent?

”

Summary and analysis

The summary and analysis provided for this measure in the Colorado 2018 Blue Book was as follows:

Background. Payday loans are small, easy-to-access short-term loans that do not require a credit check. In 2016, about 207,000 individuals in Colorado secured over 414,000 payday loans. These loans totaled over $166 million, and consumers paid an estimated $50 million in loan costs (any combination of fees and interest), with a default rate of 23 percent. The Department of Law licenses and establishes rules for payday lenders and conducts compliance examinations of their loans. The department also investigates and litigates cases involving payday lenders. Annual percentage rate (APR). The APR is the total loan cost expressed as a yearly rate and includes the interest on the loan amount, origination fees, and monthly maintenance fees. The APR varies on a daily basis and, because of the way maintenance fees are structured in Colorado, tends to increase over the life of the loan. In 2016, the average APR on payday loans in Colorado was 129 percent. Current payday loan regulations. Colorado law limits payday loans to $500 with a minimum repayment term of six months, no maximum repayment term, and no penalty for early repayment. The law allows lenders to charge an origination fee of up to 20 percent of the first $300 loaned, plus 7.5 percent of any amount in excess of $300. In addition, lenders may charge an interest rate of 45 percent per year per loan and a monthly maintenance fee of $7.50 per $100 loaned, up to a total of $30 per month. If the borrower repays the loan early, the lender must refund a prorated portion of the fees. Current law defines unfair and deceptive trade practices as making loans disguised as personal property sale and leaseback agreements or as a cash rebate. Changes under the measure. The measure reduces the loan costs on a payday loan to a maximum APR of 36 percent and eliminates the current fee structure. In addition, regardless of whether payday lenders have a physical location in the state, they may not offer higher cost loans via electronic or U.S. mail, the internet, or telemarketing.

Full text

The full text of the measure is available here.

Readability score

See also: Ballot measure readability scores, 2018

Using the Flesch-Kincaid Grade Level (FKGL and Flesch Reading Ease (FRE) formulas, Ballotpedia scored the readability of the ballot title and summary for this measure. Readability scores are designed to indicate the reading difficulty of text. The Flesch-Kincaid formulas account for the number of words, syllables, and sentences in a text; they do not account for the difficulty of the ideas in the text. The Colorado Title Board wrote the ballot language for this measure. The FKGL for the ballot title is grade level 21, and the FRE is 12. The word count for the ballot title is 37, and the estimated reading time is 9 seconds. In 2018, for the 167 statewide measures on the ballot, the average ballot title or question was written at a level appropriate for those with between 19 and 20 years of U.S. formal education (graduate school-level of education), according to the FKGL formula. Read Ballotpedia's entire 2018 ballot language readability report here.

Support

The Yes on Proposition 111 campaign, also known as Coloradans to Stop Predatory Payday Loans, led the campaign in support of the measure.

Supporters

Organizations

• Colorado Democratic Party
• Our Revolution

Officials

• Rep. KC Becker (D-13)
• Rep. Edie Hooton (D-10)

Arguments

• The Yes on Proposition 111 campaign argued, "Current law allows payday lenders to charge more than 200% interest for small loans targeted at customers who are often in dire straits. Payday lenders take advantage of Colorado communities and trap working families in a cycle of debt. This ballot initiative will cap interest rates on payday loans, ending the outrageous interest charged to borrowers who can least afford it."
• Democratic State Representatives KC Becker and Edie Hooton said, "This law ensures fair lending for consumers across the state, so why should we make an exception for a billion-dollar payday loan industry to charge a triple-digit interest rate? We shouldn't. And that is why we are voting yes on Proposition 111. Proposition 111 will stop predatory payday loans by closing the loophole that allows payday lenders to charge triple-digit interest and capping interest rates at 36 percent. This is a common-sense solution, but the payday loan industry has spent millions across the country to keep operating outside the rules that guide other lenders."

Official arguments

The supporting argument provided for this measure in the Colorado 2018 Blue Book was as follows:

“

Coloradans are paying too much to borrow small amounts of money from payday lenders. The APR for these loans can exceed 180 percent. Some consumers borrow money to pay off other payday loans, which leads to a cycle of debt. Because the measure reduces the high cost of payday loans, consumers may be better able to repay their loans and avoid further financial stress.

”

Opposition

Opponents

• The State Ballot Issue Committee, also known as 13 Issues
• Jon Caldara, head of the Independence Institute, a 501(c)(3) free market think tank in Colorado.

Arguments

• Jon Caldara said, "Prop 111 proponents assume poor people are stupid. A caring society has a duty to rip poor people away from their ability to direct their own affairs. It’s for their own good and well-being. And it has the added benefit of making the rest of us feel benevolent. Payday loan guys aren’t saints, but their customers are in fact terrible credit risks. Many rack up massive debts to then declare bankruptcy, leaving the lender with nothing. To make up this loss, lenders charge wildly high rates and fees. If payday loan sharks make the profit margin alleged, any real competition should put them right out of business. Unless of course you really do believe poor people are stupid. I don’t."

Official arguments

The opposing argument provided for this measure in the Colorado 2018 Blue Book was as follows:

“

This measure may eliminate the payday lending business in Colorado. Payday loans provide options for consumers who may not qualify for other types of credit. With limited or no access to these loans, consumers may pay higher costs to other creditors for late payment, bounced check, overdraft, or utility disconnect fees, or turn to unregulated lenders for higher-cost loans. This measure is unnecessary because the state legislature passed reforms in 2010 that led to reduced loan costs and fewer defaults, while ensuring that consumers have access to a well-regulated source of short-term credit.

”

Media editorials

See also: 2018 ballot measure media endorsements

Support

• The Gazette wrote: "A yes vote favors capping interest on so-called “payday loans” at 36 percent annually. Without this measure, payday lenders can charge up to 200 percent interest on a $500 loan. We know, “buyer beware.” But predatory lending exploits human trauma in a way a civilized society should not allow. At 36 percent, loan sharks will remain an option for people with sudden financial needs. And at 36 percent, the borrower has some chance of getting out of debt. Vote yes for reasonable constraints on predatory lending."

• The Aurora Sentinel wrote: "The proposed reforms are fair to the lending industry and helps to protect borrowers from financial ruin and misery. It limits loan interest rates to 36 percent and eliminates the gravy-train fees lenders are allowed to impose on borrowers. Vote yes on Proposition 111."

• The Aspen Times wrote: "Payday lending is not a thing in Aspen, but it is in the valley. Currently, payday loans can charge an average of more than 125 percent, while the state has limits on banks for predatory lending. We need to pull in the payday industry."

Opposition

Ballotpedia had not identified any editorials opposing Proposition 111. If you are aware of one, please send an email to editor@ballotpedia.org.

Polls

See also: Ballotpedia's approach to covering polls

• An online poll from the University of Colorado’s American Politics Research Lab and conducted by YouGov from October 12 to October 17 asked registered voters how they would vote on Proposition 111 if they had to choose "yes" or "no." Overall, it showed 84 percent in support, and 16 percent opposed. Among Democrats, there was 93 percent and 7 percent opposition. Among Republicans, there was 71 percent support and 29 percent opposition. Among independents, there was 90 percent support and 10 percent opposition.

Colorado Proposition 111 (2018)
Poll	Support	Oppose	Margin of error	Sample size
University of Colorado’s American Politics Research Lab 10/12/2018 - 10/17/2018	84%	16%	+/-3.5	800
Note: The polls above may not reflect all polls that have been conducted in this race. Those displayed are a random sampling chosen by Ballotpedia staff. If you would like to nominate another poll for inclusion in the table, send an email to editor@ballotpedia.org.

Campaign finance

See also: Campaign finance requirements for Colorado ballot measures

Total campaign contributions:
Support:	$2,192,819.68
Opposition:	$0.00

Ballotpedia identified one committee registered in support of the measure: Coloradans to Stop Predatory Payday Loans. The committee reported contributions of $2.19 million and expenditures totaling $2.26 million. The largest donor was the Sixteen Thirty Fund, which gave $2.08 million.

One committee was registered to oppose the measure— the State Ballot Issue Committee— which had not reported any campaign finance activity.

Many committees were simultaneously registered to support and oppose multiple measures, therefore it is impossible to distinguish between funds spent on a particular measure. A full list of the committees and their various positions on the 13 statewide measures in Colorado can be found here.

Support

Committees in support of Proposition 111 Supporting committees Cash contributions In-kind services Cash expenditures Coloradans to Stop Predatory Payday Loans $2,128,550.00 $64,269.68 $2,192,819.68 Total $2,082,550.00 $64,269.68 $2,192,819.68

Totals in support Total raised: $2,192,819.68 Total spent: $2,257,089.36

Donors

According to the most current reports available, the top five donors in support of this measure were as follows:

Donor	Amount
Sixteen Thirty Fund	$2,076,375.20
Center for Responsible Lending	$32,639.65
Gary Comunity Investment Company	$25,000.00
The Fairness Project	$6,682.87
Linda Shoemaker	$5,000.00

Opposition

The State Ballot Issue Committee, also known as 13 issues, was registered to oppose Proposition 111. The committee had not reported any contributions or expenditures.

Methodology

To read Ballotpedia's methodology for covering ballot measure campaign finance information, click here.

Background

Does Colorado law allow payday lenders to charge over 200% interest on small loans?
October 30, 2018: A Colorado group campaigning to limit charges for what they call payday loans claims that "current law allows payday lenders to charge more than 200% interest for small loans targeted at customers who are often in dire straits."
Does current law allow payday lenders to charge more than 200% interest for small loans? Read Ballotpedia's fact check »

Payday loans

The Consumer Financial Protection Bureau (CFPB) describes payday loans as "short-term, high-cost loans, generally for $500 or less, that is typically due on your next payday." To repay the loan, borrowers write a post-dated check for the full balance, including fees, or allow the lender to electronically debit the funds from your bank account. If a borrower fails to repay the loan on or before the due date, the lender can cash the check or electronically withdraw money from the borrower's account. Other common features of payday loans include:

• Loans for small amounts, around $500;
• Loan is to be repaid in a single payment, usually on the borrower's next payday;
• Lender does not consider the borrower's ability to pay the loan back;
• Loaned funds may be provided to the borrower by cash or check, electronically deposited into an account, or loaded on a prepaid debit card.

Legal status of payday lending by state

A total of 37 states permit payday lending. Twenty-nine states (shaded in light blue) authorize payday lending without limits on APR. Four states, Maine, Virginia, Ohio, and Oregon, (shaded in dark blue) authorize payday lending with limits on APR, but permit lenders to charge extra fees on top of interest. Four states limit APR and do not let lenders charge extra fees in addition to the interest. Thirteen states prohibit payday lending.

Path to the ballot

See also: Laws governing the initiative process in Colorado

The state process

In Colorado, the number of signatures required to qualify an initiated state statute for the ballot is equal to 5 percent of the total number of votes cast for the office of Colorado secretary of state in the preceding general election. State law provides that petitioners have six months to collect signatures after the ballot language and title are finalized. State statutes require a completed signature petition to be filed three months and three weeks before the election at which the measure would appear on the ballot. The Constitution, however, states that the petition must be filed three months before the election at which the measure would appear. The secretary of state generally lists a date that is three months before the election as the filing deadline.

The requirements to get an initiated state statute certified for the 2018 ballot:

• Signatures: 98,492 valid signatures were required.
• Deadline: The deadline to submit signatures was August 6, 2018.

The secretary of state is responsible for signature verification. Verification is conducted through a review of petitions regarding correct form and then a 5 percent random sampling verification. If the sampling projects between 90 percent and 110 percent of required valid signatures, a full check of all signatures is required. If the sampling projects more than 110 percent of the required signatures, the initiative is certified. If less than 90 percent, the initiative fails.

Cost of signature collection:
Sponsors of the measure hired FieldWorks to collect signatures for the petition to qualify this measure for the ballot. A total of $1,274,439.00 was spent to collect the 98,492 valid signatures required to put this measure before voters, resulting in a total cost per required signature (CPRS) of $12.94.

Details about this initiative

• Corrine Fowler and Reverend Dr. Annie M. Rice-Jones submitted this initiative on February 9, 2018.
• A ballot title and summary were issued for it on February 21, 2018.
• The measure was approved for signature gathering on April 27, 2018.
• On August 6, 2018, the Colorado Secretary of State's office announced via Twitter that proponents for the initiative had submitted signatures.
• On August 28, 2018, the Colorado Secretary of State's office announced that the measure had qualified for the ballot. Proponents of the measure submitted around 112,998 valid signatures based on a random sample method of signature verification. A total of 98,492 valid signatures were required.

How to cast a vote

See also: Voting in Colorado

Poll times

In Colorado, polls are open from 7:00 a.m. to 7:00 p.m. local time for those who choose to vote in person rather than by mail. An individual who is in line at the time polls close must be allowed to vote.

Registration requirements

Check your voter registration status here.

In Colorado, an individual can pre-register to vote if they are at least 15 years old. Voters must be at least 18 years old to vote in any election. A voter must be a citizen of the United States and have established residence in Colorado to vote.

Colorado voters can register to vote through Election Day. However, in order to automatically receive a absentee/mail-in ballot, a voter must register online, through the mail, at a voter registration agency, or driver's license examination facility at least eight days prior to Election Day. A voter that registers through a voter registration drive must submit their application no later than 22 days before the election to automatically receive an absentee/mail-in ballot. A voter can register online or submit a form in person or by fax, email, or mail.

Automatic registration

See also: Automatic voter registration

Colorado automatically registers eligible individuals to vote through the Department of Motor Vehicles and certain other state agencies.

Online registration

See also: Online voter registration

Colorado has implemented an online voter registration system. Residents can register to vote by visiting this website.

Same-day registration

See also: Same-day voter registration

Colorado allows same-day voter registration for individuals who vote in person.

Residency requirements

Colorado law requires 22 days of residency in the state before a person may vote.

Verification of citizenship

See also: Laws permitting noncitizens to vote in the United States

Colorado does not require proof of citizenship for voter registration. An individual applying to register to vote must attest that they are a U.S. citizen under penalty of perjury.

All 49 states with voter registration systems require applicants to declare that they are U.S. citizens in order to register to vote in state and federal elections, under penalty of perjury or other punishment. Seven states — Alabama, Arizona, Georgia, Kansas, Louisiana, New Hampshire, and Wyoming — have laws requiring verification of citizenship at the time of voter registration, whether in effect or not. One state, Ohio, requires proof of citizenship only when registering to vote at a Bureau of Motor Vehicles facility. In three states — California, Maryland, and Vermont — at least one local jurisdiction allows noncitizens to vote in some local elections. Noncitizens registering to vote in those elections must complete a voter registration application provided by the local jurisdiction and are not eligible to register as state or federal voters.

Verifying your registration

The site Go Vote Colorado, run by the Colorado Secretary of State office, allows residents to check their voter registration status online.

Voter ID requirements

Colorado requires voters to present non-photo identification when voting in person. If voting by mail for the first, a voter may also need to return a photocopy of his or her identification with their mail-in ballot. Click here for more information.

The following list of accepted forms of identification was current as of October 2025. Click here for the most current information, sourced directly from the Office of the Colorado Secretary of State.

“

The following documents are acceptable forms of identification: A valid Colorado driver’s license or valid identification card issued by the Colorado Department of Revenue. (Note: documents issued to not lawfully present and temporarily lawfully present individuals under Part 5 of Article 2 of Title 42, C.R.S. are not acceptable forms of identification.) A valid U.S. passport. A valid employee identification card with a photograph of the eligible elector issued by any branch, department, agency, or entity of the U.S. government or of Colorado, or by any county, municipality, board, authority, or other political subdivision of Colorado. A valid pilot’s license issued by the federal aviation administration or other authorized agency of the U.S. A valid U.S. military identification card with a photograph of the eligible elector. A copy of a current (within the last 60 days) utility bill, bank statement, government check, paycheck, or other government document that shows the name and address of the elector. A Certificate of Degree of Indian or Alaskan Native Blood. A valid Medicare or Medicaid card issued by the Centers for Medicare and Medicaid Services. A certified copy of a U.S. birth certificate for the elector. Certified documentation of naturalization. A valid student identification card with a photograph of the eligible elector issued by an institute of higher education in Colorado, as defined in section 23-3.1-102(5), C.R.S.. A valid veteran identification card issued by the U.S. department of veterans affairs veterans health administration with a photograph of the eligible elector. A valid identification card issued by a federally recognized tribal government certifying tribal membership. Any form of identification listed above that shows your address must show a Colorado address to qualify as an acceptable form of identification. The following documents are also considered acceptable forms of identification for voting: Verification that a voter is a resident of a group residential facility, as defined in section 1-1-104(18.5), C.R.S. Verification that a voter is a person committed to the department of human services and confined and eligible to register and vote shall be considered sufficient identification of such person for the purposes of section 1-2-210.5, C.R.S. Written correspondence from the county sheriff or his or her designee to the county clerk indicating that a voter is confined in a county jail or detention facility.

”

• Note: SB 1, signed into law on May 12, 2025, specified that tribal IDs issued by the Bureau of Indian Affairs, the Indian Health Service, or another federal agency were also valid identification.

See also

2018 measures

• 2018 ballot measures
• Banking on the ballot
• 2018 petition deadlines

Colorado

• Colorado ballot measures
• Colorado initiative laws

News and analysis

• Ballot measure lawsuits
• Ballot measure readability
• Ballot measure polls
• Ballot measure signature costs

External links

• Colorado Secretary of State: 2017-2018 Initiative Filings, Agendas & Result
• Initiative #126 Text

Support

• Yes on Prop 111, Stop Predatory Payday Loans campaign website
• Yes on Prop 111 Facebook
• Yes on Prop 111 Twitter

Opposition

Submit links to editor@ballotpedia.org.