Colorado Payday loans

Colorado is open to the possibility of short-term loans to help their citizens meet urgent needs for cash. As a way to protect both lenders and borrowers, the state has enforced comprehensive laws to make sure that both parties are dealt with fairly. Aside from setting up minimum and maximum borrowing amounts, Colorado also states the ideal length of time for payments as well as maximum interest rates enforced by lenders. These clear cut rules have paved the way for payday loan prosperity with many lenders not just available through office-based lending institutions but also online.

Payday Loan Process in Colorado

Colorado lenders have different requirements and process when approving a loan. The most common conditions for application are:

  • The borrower must be at least 18 years of age
  • Have a savings or checking account under his/her name
  • Proof of citizenship in Colorado, USA
  • Proof of employment and minimum salary of $800 per month

Once all these needs are met, it is a simple matter of filling in the application and arranging the cost of the loan. Colorado payday loan lenders also entertain borrowers with a bad credit rating. Upon approval of the loan, borrowers may set up their accounts for automatic repayment. Today, Colorado lenders provide online and offline applications for easier transactions.

Colorado Payday Loan Laws and Regulations

To further ensure fairness in payday loans within Colorado, the state recently changed their regulations pertaining to borrowers and lenders.  Following are the new laws in practice:

  • Maximum Loan Amount: $500
  • Minimum Loan Tenure: 6 months
  • Debt Limit for Simultaneous Outstanding Loans: No limit so long as debt is within $500 and 30-days apart
  • Collection Fees: $25 NSF, attorney and court fees no more than the loan amount
  • Fees and loan charges: loans between $0 and $300 are charged 20% plus 7.5% for loans between $301 and $500 and 45% for the yearly interest. A fee of $7.5 is enforced each month for every $100 borrowed.
  • Rollovers Allowed: One renewal at 45%

Colorado Consumer Protection

All borrowers availing of payday loans in Colorado must be aware of the laws and regulations governing the state. Colorado enforces limits on transactions to protect borrowers from unsavory dealings. Check with the Uniform Consumer Credit Code to fully understand the rulings governing the state. For problems, the Colorado Attorney General’s Office handles complaints and questions regarding lenders and finance companies. These safeguards are put in place to help borrowers get the most from their payday loan. It is strongly advised that consumers routinely visit concerned websites to keep them updated regarding payday loan laws.

Colorado Department of Law   Website:  www.coloradoattorneygeneral.gov
Uniform Consumer Credit Code (UCCC)  

Website: www.coloradoattorneygeneral.gov/departments/consumer_protection/uccc_cab/uccc 

Colorado Payday Loan Alternatives

For those who would rather avoid payday loans, the state of Colorado offers alternatives that can help individuals on their temporary cash flow problems. A good substitute is to contact the creditor directly and request for postponement of fees. Debt consolidation, borrowing directly from the employer and using credit cards are also viable alternatives, depending on the amount of cash deficiency. For larger sums, bank loans or title loans may be the best option available.

 

 

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