What is the maximum APR payday lenders can charge in Colorado?

Hello Jonathan,

As per the old law, payday loan lenders at Colorado can charge maximum 520% APR (annual percentage rate). But as per the amended payday loan laws (2010), lenders may charge maximum up to 45% APR for each loan.

Of course, there's an initial maintenance fee - 20% for every $100 loan amount up to the first $300, and 7.5% for every $100 from $300 to $500, capped at $30 per month. It can be charged after the first 30 days if the borrower doesn't pay off the loan.

Lending rules for Colorado payday loans:

The lender should lend an amount of $500 to a borrower. The lender shouldn’t lend more than $500. The lender can charge an interest rate of 45% per annum for each payday loan.

The best thing to do is avoid taking out a payday loan. Look for alternatives - like borrowing the amount from one of your friends or family members. If you're making a verbal agreement, make sure you pay back the amount on time.