Payday Loan help for Colorado people
"In accordance with section 5-3-502, no person shall engage in the business of deferred deposit loans without having first obtained a supervised lender's license pursuant to section 5-3-503. A separate license shall be required for each location where such business is conducted."
Top Queries
- How do I know if a lender is licensed in CO or not?
- How much a lender can charge as fees?
- What if the check returns NSF?
- Where to complain if I find any company violating the laws?
How do I know if a lender is licensed in CO or not?
Check out the database of licensed Supervised Lenders in the website of the state Attorney General.
How much a lender can charge as fees?
The allowed fee structure is a bit complex here in Colorado. It goes like this:
20% for first $300 + 7.5% for the amount above $300
This is the maximum amount a lender can charge. Maximum loan amount is $ 500.00 and maximum loan term is of 40 days.
Note: Consumers cannot have more than $500 outstanding on deferred presentment loan at a time. Lenders should display a notice at a convenient place in the loan agreement that says: "State law prohibits deferred deposit loans exceeding five hundred dollars ($500) total debt from a deferred deposit lender. Exceeding this amount may create financial hardships for you and your family. You have the right to rescind this transaction by 5 p.m. the next business day following this transaction."
What if the check returns NSF?
Lender can charge fees maximum $25 + Court Fees + reasonable Attorney’s Fees (shall not cross total loan amount).
No criminal charges can be brought against the customer unless check returns due to account closure before the scheduled date of negotiation.
Where to complain if I find any company violating the laws?
Visit the website of Colorado Attorney General, Colorado Department of Law to file complaint against Deferred Presentment companies, payday loan companies, cash advance companies or check cashers.
