DENVER -- The west steps of the Capitol were full of supporters Tuesday who voiced opposition to a bill that would cap the interest rate of payday loans at 45 percent interest.

House Bill 1310 would only allow lenders to charge $1.73 per $100 borrowed for a typical two-week-period. Opponents of the bill, sponsored by Rep. Mark Ferrandino, D-Denver, said that's less than 13 cents a day.

"We have support in the Senate," said Michael Shannon, director of public affairs for Moneytree Inc.

Sen. Jennifer Veiga, D-Denver, said it would dry up what she considered to be a "viable option" for people in a time of need. She said she was concerned it might force people to take on things that will have much higher interest rates and have more significant penalties to them.

Sen. Mike Kopp, R-Jefferson County, said it was an "anti-market" bill.

"Government has no business second guessing consumers' credit needs," said Kopp.

Rich Jones, with the Bell Policy Center, disagrees. He said consumers need help from these sort of lenders when the average annual percentage rate is over 300 percent.

The Colorado Attorney General said that the average payday lender who borrows a total of $887 will pay $544 in finance fees, for a period of less than five and a half months, on an average loan of $343.

Still, some said it's an option they'd like to have when they're in a crunch.

"I used their services when my car broke down and my paycheck didn't go far enough to fix my transmission," said Richard Kuhn.

If the cap passes, payday lenders said the loan option will no longer exist. They said the annual percentage rates help pay the rent and their employees.

The bill has passed the House and it is up for its second reading in the Senate.