Loan Rates and Fees in Colorado

Colorado deferred deposit loans carry a finance charge - labeled "origination/acquisition fee" on your agreement - of up to 20% on the first $300 borrowed plus 7.5% on any amount between $300.01 and $500, with a per-loan cap of $500 total outstanding and a minimum 6-month term. The lender may also charge an interest rate of up to 45% per annum on the amount financed and a monthly maintenance fee of up to $7.50 per $100 (full increments only), starting after the first month.

However, Colorado's 36% APR cap applies to all deferred deposit loans - the total cost including all charges cannot exceed a 36% annual percentage rate. Federal disclosure rules require the lender to show an APR on your agreement; on a 6-month $300 loan at the 36% APR cap, total charges run roughly $53.

• Renewals are permitted; upon renewal the lender may not charge a new origination/acquisition fee or monthly maintenance fees, and may refinance only up to $500.
• The returned payment fee - labeled "NSF fee" or "returned check fee" on your agreement - is capped at $25 per failed payment attempt.
• No separate database or verification fee is allowed; if you see one as a line item, contact the Colorado Attorney General's Consumer Credit Unit before signing.

If an offer exceeds these limits, verify with the Colorado Attorney General's Consumer Credit Unit.

Licensed supervised lenders in Colorado charge interest on the declining (unpaid) balance using a tiered rate structure:

An upfront fee - sometimes labeled "acquisition charge" on your agreement - is permitted up to 8% of the amount financed on the original loan. On a $1,000 loan that is up to $80.

On a $1,000 loan at 36% declining-balance interest for 12 months with no acquisition charge, you'd repay approximately $1,206 total - roughly $206 in interest. Adding the maximum 8% acquisition charge ($80) brings the maximum total to approximately $1,286.

• Refinancing restarts interest and fees on the new balance - compare your remaining balance to the new loan's total of payments before you agree.
• The same $25 returned payment fee cap applies - see payday loan costs above.
• Late fees: capped at $15 per delinquent installment under the UCCC for supervised lender loans.
• You can prepay in full at any time with no penalty - interest stops accruing on the date you pay; see installment loans in Colorado for repayment details.

If an offer exceeds these limits, verify with the Colorado Attorney General's Consumer Credit Unit.

• Returned payment fee: can't exceed $25 on either product.
• Total of payments: add every line item on the agreement and confirm it matches the "total of payments" disclosure.
• Military households: if you or your spouse are active-duty, the all-in cost can't exceed 36% MAPR under federal law - compare to the APR on your offer.