The ongoing battle over the interest rates that online lenders can charge has moved to Colorado, which is taking aggressive steps to enforce its 12% rate cap for consumer loans.

The state’s hard-nosed posture is setting off alarm bells in the marketplace lending industry, where lending websites frequently partner with banks in arrangements that are designed to work around state-by-state interest rate caps.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.