Payday loans in Colorado
Only the Deferred Deposit Loan Act allows payday-style loans in Colorado, featuring a 36% APR cap voters chose in 2018 and a six-month minimum term.
- Payday lending
- Only as installments
- Max cost
- 36% APR
- Top amount
- At any time, no single lender may provide more than $500.
Are payday loans legal in Colorado?
Under the Colorado Deferred Deposit Loan Act, Colorado permits payday loans only when they are installment loans. Installment loans get paid back over time, so two-week loans are not allowed. A lender must allow you at least six months to repay, cap your total at $500, and keep at least 30 days between loans. Renewing a loan is allowed just one time. The finance charge cannot go over a 36 percent annual percentage rate, which shows the yearly borrowing cost as a percentage.
Colorado voters set the 36 percent limit in 2018 by passing Proposition 111. In 2020 the Colorado Attorney General settled with firms that had used out-of-state banks to lend above it. To see whether your lender holds a state license, look it up in the Consumer Credit Unit License Holders Report. If you change your mind after you take a loan, you still have until five p.m. on the following business day to cancel it.
- Through Proposition 111, voters themselves put the 36% APR cap in place, effective 1 February 2019.
- Colorado requires payday loans to last at least six months, so two-week loans are not allowed.
- After taking a loan, you can cancel by 5 p.m. the next working day.
- A lender must wait 30 days between loans at minimum and keep the total below $500.
- 2020 brought 'rent-a-bank' settlements by the Attorney General: Avant, Marlette, WebBank, and Cross River Bank agreed to keep Colorado borrowers at 36% or below and pay $1,050,000.
Colorado payday loan laws
- Law in force
- Colorado Deferred Deposit Loan Act
- Cited as
- C.R.S. 5-3.1-101 through 5-3.1-123
- Fees under the law
- thirty-six percent is the maximum annual percentage rate for a finance charge.
- Most you can borrow
- At any time, no single lender may provide more than $500.
- How long a loan runs
- at least six months from the loan transaction date
- Rollovers
- one renewal allowed (no loan may be renewed more than once).
- Cooling-off gap
- a waiting period of at least thirty days between loans
- Loans you can hold at once
- the total amount financed must not exceed $500 at any one time to allow more than one loan.
- Installment lending limits
- UCCC supervised loans: 36% yearly on the first $1,000, 21% between $1,000 and $3,000, 15% over $3,000, or 21% yearly on the whole balance, whichever is greater
Also checked against law.justia.com. Full statute text.
Online lenders that list Colorado
Six companies we track say they lend in Colorado: 5 tribal lenders and 1 loan broker.
| Lender | Kind | Posted APR |
|---|---|---|
 Viva Payday Loans | Broker | Partner lenders quote 4.99% to 1,386% |
Tribal loans in Colorado
On the immunity claim tribal lenders make, see are tribal loans legal.
Five tribal lenders we track list Colorado as a state they lend in. Two of the five publish an APR, from 99% to 725%. Both post a top APR above Colorado's 36% APR cap.
| Lender | Posted APR |
|---|---|
 Spotloan | 99% to 490% |
 BrightLending | 325% to 725% |
 MaxLend | Not published |
 Minto Money | Not published |
| American Web Loan | Not published |
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Lender cases and orders in Colorado
Colorado and the states around it
| State | Payday lending | Max cost | Top amount |
|---|---|---|---|
| Colorado | Only as installments | 36% APR | At any time, no single lender may provide more than $500. |
| Kansas | Allowed | $15.00 per $100 borrowed | $500 |
| Nebraska | Banned | 36% APR | A total of $500 across all checks held from a single borrower |
| New Mexico | Banned | 36% APR | None allowed |
| Oklahoma | Only as installments | None in the law | Across all licensees, one borrower’s outstanding principal from small loans is limited to $1,500 and moves with CPI every other year. Payments due each month may not exceed 20% of monthly income before deductions. |
| Utah | Allowed | None in the law | no limit in state law |
| Wyoming | Allowed | Fees run $30 or 20% monthly, with the higher figure applying. | W.S. contains no set limit. 40-14-363 |
Colorado loans with no credit check
Installment loan rates: UCCC supervised loans: 36% yearly on the first $1,000, 21% between $1,000 and $3,000, 15% over $3,000, or 21% yearly on the whole balance, whichever is greater.
See no credit check loans: the checks lenders still run, and the price.
Verify a lender's license in Colorado
- Look the lender up on the license list before you hand over any bank details.
- Lenders here answer to the Colorado Attorney General, Administrator of the Uniform Consumer Credit Code.
- Had trouble with a lender? Report the lender.
Sources for Colorado
- A deferred deposit or payday loan finance charge may not exceed 36% APR.; Proposition 111 created the 36% cap, which became effective on 1 February 2019.; The Act allows only expressly authorised charges.law.justia.com
- The loan term must be at least six months, with no maximum term.law.justia.com
- At any time, a lender cannot lend more than $500 to a consumer.; You may have more than one loan only if the total remains within $500 and you wait 30 days between them.; You may rescind no later than 5 p.m. the next working day.law.justia.com
- You may renew a loan just once, and that renewal also faces a 36% APR cap.law.justia.com
- The rate on a supervised loan begins at 36% a year for the first $1,000.law.justia.com
- Complaints about lenders are investigated by the UCCC Administrator, who also licenses payday lenders.coag.gov
- You can search for licensed lenders in the Consumer Credit Unit License Holders Report.coag.gov
- Avant and Marlette, the AG alleged, joined with banks in other states and rented those banks' ability so they could lend above Colorado limits.; The companies agreed in the August 2020 settlement to pay the state $1,050,000.coag.gov