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.
| Legal Status | Legal |
| Minimum Loan Amount |
Not Specified
|
| Maximum Loan Amount |
$500
|
| Minimum Loan Term |
6 months (180 days)
|
| Maximum Loan Term |
Not Specified
|
| Interest Rate (APR) |
214%
|
| Finance Charges | <$300 = 20$ >$300 = 20$ + 7.5% of any excessive amount |
| Number of Rollovers Allowed | 1 |