Payday Loans Colorado

Payday loans are legal in Colorado (Aurora, Denver, etc). They are officially called “deferred deposit loans“.

Payday lending is regulated by Article 3.1 (Deferred Deposit Loan Act) of Title 5 (Consumer Credit Code) in Colo. Rev. Stat. 5-3.1-101 et seq.

The maximum loan amount is $500. Payday loans can be taken for 180 days and longer. The maximum finance charge is 20% for loans up to $300, allowed APR is 45%, real APR is 214%. An allowed NSF fee is $25. The interest rate for rollovers is 45%.

In Colorado, a person is allowed to take several loans but there should be a cooling-off period of 30 days between them.

In case the loan amount is larger than $300, a lender charges an extra 7.5% as a finance charge for every $100. A lender can also charge a $7.50 monthly maintenance fee for each deferred deposit loan.

Criminal actions against borrowers are prohibited.

Colorado Payday Loan Regulations:
Legal Status Legal
Minimum Loan Amount
Not Specified
Maximum Loan Amount
Minimum Loan Term
6 months (180 days)
Maximum Loan Term
Not Specified
Interest Rate (APR)
Finance Charges <$300 = 20$
>$300 = 20$ + 7.5% of any excessive amount
Number of Rollovers Allowed 1