How Much Can I Borrow in Colorado?
- In Colorado, you can borrow up to $500 (total), and the minimum loan amount is not specified.
- While you are allowed to take several loans, the outstanding amount should not exceed $500 at one given time.
What are the Rates, Fees, and Other Charges in Colorado?
- No more than 36% can be charged for any short loan, more details are as follow:
- 1. Organization fee – up to 20% of the first $300 loan, plus 7.5% of any amount above $300 loan.
- 2. Maintenance fee – up to $30 per month.
How Much Would a $100 Payday Loan Cost?
With a 14 days term:
Loan cost: $100*36%* (14/365)=$1.4
To return: Principal+Loan cost=$100+$1.4=$101.4
What is the Maximum Term for a Payday Loan in Colorado?
- The maximum term is 6 months.
- No penalty for early repayment.
From July 2020, lenders are not required to check a borrower’s ability to repay a loan.
Be careful, evaluate your financial situation, and don’t get into a debt trap.
The rule was changed by the CFPB.
- One NSF collection fee of no more than $25 can be charged.
- The loan amount plus the attorney fee can be recovered through a court trial In case the loan is not repaid. However, a collection agency is not allowed to file any actions against a borrower apart from the cases when the checking account of a borrower was closed before the repayment was done.
- The practice of spitting a loan into two parts is forbidden in Colorado, through which lenders can gain more profits by charging interest from both parties of the loan and therefore withdrawing more money from the borrower.
For more details about the laws and regulations in Colorado, you may refer to the official website of the Office of the Attorney General.