The Colorado Legislature has passed a landmark measure, HB 1394, that will open a brand new market in the state for personal installment lenders. The measure, which just passed the Senate 33-1, is awaiting the Governor's signature at press time.

The measure covers loans up to $1,000 with a duration of 90 days to 12 months and allows a "supervised lender" to charge an acquisition charge and a monthly installment handling charge in lieu of a finance charge.

Phil Holt, AFSA's State Government Relations Committee Personal Loan Subcommittee Chair, teamed up with Independents Section Chair Andrew Morrison to build a working group that crafted the legislation. The bill then passed the legislature with bipartisan support.

The new law is scheduled to go into effect in early August and "supervised lenders" will be regulated by the UCCC administrator in the Attorney General's office, with whom the Colorado Financial Services Association members have a strong working relationship.