New rules and regulations will be in place in Colorado effective next month (August) according to NPR. There will be a strict cap placed on payday loan interests at 45 percent when that law will take a place. Many payday lenders in Colorado have plans to close doors for business as 45 percent gap will not be profitable for them to continue their business operations. In fact after taking all their overhead and cost of business, 45 percent could be a loss for many of them.

In fact, many online payday lenders have already ceased offering payday loans in that State already. When we asked for the reason from a Internet Marketing Consultant that focuses payday loan industry he said, “online payday lenders pay a lot more for acquiring their leads, whether it is from email marketing, pay per click, or buying their leads from other lead companies.  A cap of 45% will be pure loss for many online lenders I work with”.

Despite all regulations, according to an article by a payday loan blog, payday loans remain in demand in US simply because of the continuous credit crunch. Occasional positive financial news, mainly over stock market, doesn’t mean that average American families aren’t still hurting. Cash flow remains to be a major problem because of both unemployment and under employment. Unemployment continues to be around 10 percent, and underemployment nears 17 percent.

It doesn’t seem that unemployment and underemployment is going to improve anytime soon, specially by all the recent financial restrictions and regulations passing by the States and Federal governments recent financial overhaul, many experts believe, will lead to more layoffs that the financial companies.