Are Payday Loans Legal in Colorado?
Short-term Payday Loans are legal in the state of Colorado and are mostly regulated through Colo. Rev. Stat. 5-3.1-101 et seq.. The Payday Lending legislation covers all the parts of the process concerning:
- Payday Loan amounts
- Payday Loan repayment terms
- Payday Loan online direct lenders
- Payday Loan stores near you
- Payday Loan interest rates and other fees
- Payday Loan collecting practices
- Payday Loan default penalties
- The number of outstanding Payday Loans as well as a cooling-off period in-between etc.
The main Payday Loan requirements in Colorado are:
- US residence
- Minimum regular income of $1,000 per month
- Valid checking or savings account with direct deposit
- Phone number and e-mail address
Colorado allows maximum $500 Payday Loan amount. It should be repaid not earlier than 180 day(s) as you get your next paycheck. Earlier payments don’t contemplate any additional fees. You are likely to be charged <$300 = 20$
>$300 = 20$ + 7.5% of any excessive amount taking into account the maximum APR of 36.00%. For other details read further to find out how many Payday Loans you can borrow, whether rollovers or extensions are allowed, etc.
Colorado Payday Loan Terms and Amounts
Colorado residents who are eligible for a Payday Loan can get $500 cash advance per contract. The repayment term is capped at minimum 180 day(s).
However, there are no limits on the purpose of loan usage. Any urgent expenses, unforeseen bills, car repairs, home repairs, etc. may seem a sound reason to apply for a Payday Loan in Colorado.
If $500 is not enough, there are always other options to receive the necessary funds in Colorado: unsecured Installment Loans, bad credit Personal Loans, Title Loans, Check Cashing, Pawn Shops, etc.
Colorado Payday Loans online laws
Payday loans from both storefront and online lenders are legal in the state of Colorado according to the laws contained in Article 3.1 (Deferred Deposit Loan Act) of Title 5 (Consumer Credit Code) in the Colorado Revised Statutes (Colo. Rev. Stat. 5-3.1-101 et seq.). And any lender who violates these laws can be subject to civil penalties.
Reputable online lenders operating in accordance with all relevant state and federal laws can be applied to and compared on our platform using a simple online application form.
You state the necessary amount, fill in your personal information and get suitable offers from legit direct lenders. It takes only a few minutes and doesn’t affect your credit score.
Colorado Payday Loans interest rates, fees, and other finance charges
The main part of payday loan payment is mostly made up of the interest rate, or APR. The average APR that may be charged for short-term cash advances in Colorado is 36.00%. It means that if you borrow $100 Payday Loan for 14 days the finance charges will be 15% of the amount advanced.
Besides, the total cost of a Payday Loan includes some additional fees. California lending rules allow charging $25 NSF fee, default fee in the amount of a loan, plus attorney fee in case of a court.
The law obligates Colorado Payday Loan lenders to provide you with a written disclosure of all the rates and fees in understandable language. You should read them carefully and if you agree acknowledge the notification by signing the contract.
Colorado Payday Loans direct lenders’ regulations
According to Colorado payday loan laws, all direct lenders are obliged to register their companies which will allow issuing payday loans contract. It concerns both Online Payday Loans and Online Payday Loans Near Me.
The main rules regarding Payday loan lenders in Colorado state that they can:
- Issue maximum $500 loan at a time
- Charge up to <$300 = 20$
>$300 = 20$ + 7.5% of any excessive amount
- Give you a contract typed in a language you understand
- Display license & fee structure at each location
But Colorado Payday Loan lenders are prohibited to:
- Threaten you for late payments or loan default
- Charge extra fees for an extension of the repayment plan
- Sell your personal information to any third parties
Colorado Payday Loans consumer information
Besides amounts, rates, and fees, consumers must be also well aware of other details of Payday Loans in Colorado. They include the availability and number of rollovers, extensions, and repayment plans, a cooling-off period, any default penalties or additional fees, etc. Check out the table below to find the most essential information:
|Rollovers or extensions||1 rollover|
Look for more detailed information on the official Colorado state regulator website – https://coag.gov/.
Legitimate Payday Loans Online with NO credit check in Colorado
Looking for a legal Payday Loan with No credit check in Colorado? You must understand the meaning of this phrase correctly at first. No credit check implies that a lender will not inquire your credit history information from or send your borrowing data to any of the three major credit bureaus Equifax, Experian, and TransUnion.
If you don’t want to damage your credit history, Colorado law allows you to apply for a Payday Loan with No credit check. But you should understand that a lender needs to check your creditworthiness at least in some way. He can perform a soft credit check when a lender pre-approves you for a loan and this inquiry will not appear on your credit report. Or there’re other ways to prove you can afford the cash advance. Payday Loan lenders use the tracking system to verify your debts, check your income, etc. And generally, they charge higher interest to lessen the risks.
Colorado Payday loans online no credit check are one of the easiest options of getting quick cash to cope with emergency financial requirements, especially for people with poor credit.
Does Colorado law allow Payday Loans for bad credit borrowers?
The average credit score in Colorado is 688, placing it in the good range. But it doesn’t mean that those who have worse credit can’t apply for a Payday Loan in Colorado.
- First of all, There’re a lot of legit direct lenders in Colorado providing Payday cash advances to borrowers with both good and bad credit scores.
- Secondly, you can always find a cosigner to increase your chances of being approved for a bad credit Payday Loan.
- Find out how to improve your credit score and do your best to do it fast.
- Or consider taking out a bad credit Installment Loan, or bad credit Personal Loan.
Legit Payday Loans in Colorado collection practices
If you can’t repay the loan amount plus interest on a due date it means you default the loan. When Colorado direct lender isn’t able to cash your check after the repayment term is over he may charge you an NSF fee. NSF fee means there are non-sufficient funds on your account. The amount charged is determined by the lender and stated in the agreement and may also be limited by the state’s Payday Loan law. In Colorado it’s $25.
Besides, there are other default penalties in Colorado such as $25 NSF fee, default fee in the amount of a loan, plus attorney fee in case of a court.
What concerns collection practices, first of all, you may stay assured that any criminal actions are forbidden in Colorado. The laws limit the collection actions lenders can take – When a borrower has failed to repay a Colorado payday loan, the laws dictate that lenders are not allowed to take any legal action against that borrower unless the individual has closed his or her checking account prior to repaying the debt in full. This essentially means that borrowers who maintain their checking accounts and who are unable to repay payday loans will be protected from payday loan lenders’ attempts to sue them or garnish their wages.
If you think that your payday lender violates the Colorado Payday Loans law, you may file a written complaint with The Office of the Attorney General. The supervisor from that office interviews witnesses, reviews the payday lender’s business records and documentation, and determine whether to pursue civil or criminal charges.
Colorado Payday Loans news – latest changes
Colorado’s new payday loan law taken in November, 2019 is now in effect. The loan interest rate for borrowers is now capped at 36% APR. It also eliminates all other finance charges and fees associated with payday lending.
Colorado Payday Loans historical background
|2000s||Payday Loans were legal.|
|2006||Payday Loans were capped at 36% APR for the military.|
|2007||Unsuccessful attempt of Payday lending reform.|
|2010||New laws required lenders to offer an affordable installment repayment plan which led to lower rates.|
|June 2, 2016||The Consumer Financial Protection Bureau (CFPB) proposed a Payday Loan Rule that hasn’t yet fully come into effect (expected in November 2020).|