Colorado Cash Advance Consumer information

Payday Loan usage info:
7% (seven percents)
Short term loan permit:
Mixed
Legislation:
Civil Code 1789.30 et seq.
Maximum loan amount:
It’s forbidden to lend more than five hundred dollars, and financed amount should not surpass to customer amount of five hundred dollars.
Cash loan period:
After the date consumer took a loan it’s minimal duration is six months.
Fees:
For every lending transaction creditor can charge a fee that not more than twenty percents of 1st three hundred, and 7,5% for other amount that is more than three hundred dollars. Also creditor can charge forty five percents annually for each payday loan transaction. In the cases when loans was paid ahead of time the creditor has to recalculate the difference and based on interest rate return to a customer part that was payed before the term. Also, creditor can charge a maintenance fee for each loan than not exceed seven point five dollars per each hundred, up to thirty dollars a month. Maintenance charge can be applied for each month loan has not been repaid after thirty days after the date of transaction of the loan. Creditor has to charge fees only according the state laws part of which is described here. In the case of prolongation APR has to not exceed 45%.

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:

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 skytrail loans 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:

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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