(last updated 11/13/2019)
Colorado Personal Loan Laws and Regulations in (CO)
For purposes of this article, "consumer credit transaction" applies to consumer loans, including supervised loans, consumer credit sales, and refinancing and consolidations of these transactions but does not include consumer leases
5-2-201. PART 2 MAXIMUM FINANCE CHARGES AND OTHER FEES AND CHARGES
Finance charge for consumer credit transactions. (1) With respect to a consumer loan other than a supervised loan, including a revolving loan, a lender may contract for and receive a finance charge calculated according to the actuarial method not exceeding twelve percent per year on the unpaid balance of the amount financed. (2) With respect to a supervised loan or a consumer credit sale, except for a loan or sale pursuant to a revolving account, a supervised lender or seller may contract for and receive a finance charge, calculated according to the actuarial method, not exceeding the equivalent of the greater of either of the following: (a) The total of: (I) Thirty-six percent per year on that part of the unpaid balances of the amount financed that is one thousand dollars or less; (II) Twenty-one percent per year on that part of the unpaid balances of the amount financed that is more than one thousand dollars but does not exceed three thousand dollars; and (III) Fifteen percent per year on that part of the unpaid balances of the amount financed that is more than three thousand dollars; or (b) Twenty-one percent per year on the unpaid balances of the amount financed. (3) (a) Except as provided in paragraph (b) of this subsection (3), the finance charge for a supervised loan or consumer credit sale pursuant to a revolving credit account, calculated according to the actuarial method, may not exceed twenty-one percent per year on the unpaid balance of the amount financed.
5-2-214. Alternative charges for loans not exceeding one thousand dollars.
(1) For a consumer loan where the amount financed is not more than one thousand dollars, a supervised lender may charge, in lieu of the loan finance charges permitted by section 5-2-201, the following finance charges: (a) An acquisition charge for making the original loan, not to exceed ten percent of the amount financed; (a.5) An acquisition charge for making any refinanced loan, not to exceed seven and one-half percent of the amount financed; and (b) A monthly installment account handling charge, not to exceed the following amounts: Amount financed Per month charge $100.00 - $ 300 $12.50 $300.01 - $ 500 $15.00 $500.01 - $ 750 $17.50 $750.01 - $ 1,000 $20.00
(2) The minimum term of a loan made pursuant to this section shall be ninety days. The maximum term of a loan made pursuant to this section shall be twelve months. All loans shall be scheduled to be payable in substantially equal installments at equal periodic intervals.
(3) On a loan subject to the alternative charges authorized by this section, no other finance charge or any other charge or fee is permitted except as specifically provided for in this section and except for the delinquency charges provided for in section 5-2-203, reasonable attorney fees provided for in section 5-5-112, and the fee for a dishonored check provided for in section 5-2-202 (1) (e) (II).
(4) The acquisition charge authorized in this section shall be fully earned at the time the loan is made and shall not be subject to refund; except that, if the loan is prepaid in full, refinanced, or consolidated within the first sixty days, the first ten dollars of the acquisition charge shall be retained by the lender and the remainder of the acquisition charge shall be refunded at a rate of one-sixtieth of the remainder of the acquisition charge per day, beginning on the day after the date of the prepayment, refinancing, or consolidation and ending on the sixtieth day after the loan was made.
(5) Upon the prepayment of a loan made pursuant to this section, the unearned portion of the installment account handling charge shall be refunded to the consumer. The unearned portion of the installment account handling charge that is refunded shall be calculated pursuant to the provisions on rebate upon prepayment contained in section 5-2- 211 on the date of refinancing; except that, for the purpose of computing this amount, no minimum charge described in section 5-2-201 shall be allowed.
(6) The rates and charges permitted by this section shall not apply to deferred deposit loans subject to article 3.1 of this title. 30
(7) A lender shall not take collateral from a consumer as security for payment for any loan made pursuant to this section. (8) A lender may not refinance a loan made pursuant to this section more than three times in one year.
This information is for informational purposes only. Although care has been taken to accurately describe the laws and regulations in Colorado, no guarantees are implied or expressed about its accuracy. This is not legal advice. If you need legal advice, please consult an attorney or the Colorado Office of the Attorney General.
The following classes of lending organizations may be exempt from some, all, or none of the regulations set by the state of Colorado. Federally chartered banks, state chartered banks, credit unions and some entities organized under the laws of a sovereign nation (for example) a Native American Tribe or the country of Antigua.