C.R.S. Section 5-2-214
Alternative charges for loans not exceeding one thousand dollars

(1)

[Editor’s note:
This version of subsection (1) is effective until January 1, 2024.]
For a consumer loan where the amount financed is not more than one thousand dollars, a supervised lender may charge, in lieu of the loan finance charges permitted by section 5-2-201, the following finance charges:

(a)

An acquisition charge for making the original loan, not to exceed ten percent of the amount financed;

(a.5)

An acquisition charge for making any refinanced loan, not to exceed seven and one-half percent of the amount financed; and

(b)

A monthly installment account handling charge, not to exceed the following amounts:
Amount financed
Per month charge
$100.00 - $300
$12.50
$300.01 - $500
$15.00
$500.01 - $750
$17.50
$750.01 - $1,000
$20.00

(1)

[Editor’s note:
This version of subsection (1) is effective January 1, 2024.]
For a consumer loan where the amount financed is not more than one thousand dollars, a supervised lender may charge, in lieu of the loan finance charges permitted by section 5-2-201, the following finance charges:

(a)

An acquisition charge for making the original loan or any refinanced loan, not to exceed eight percent of the amount financed; and

(b)

A monthly installment account handling charge, not to exceed the following amounts: Amount financed
Per month charge
$100.00 - $300
$8.50
$300.01 - $500
$11.50
$500.01 - $750
$14.50
$750.01 - $
1,000
$17.50

(2)

[Editor’s note:
This version of subsection (2) is effective until January 1, 2024.]
The minimum term of a loan made pursuant to this section shall be ninety days. The maximum term of a loan made pursuant to this section shall be twelve months. All loans shall be scheduled to be payable in substantially equal installments at equal periodic intervals.

(2)

[Editor’s note:
This version of subsection (2) is effective January 1, 2024.]
The minimum term of a loan made pursuant to this section is six months. The maximum term of a loan made pursuant to this section is twelve months. All loans shall be scheduled to be payable in substantially equal installments at equal periodic intervals.

(3)

[Editor’s note:
This version of subsection (3) is effective until January 1, 2024.]
On a loan subject to the alternative charges authorized by this section, no other finance charge or any other charge or fee is permitted except as specifically provided for in this section and except for the delinquency charges provided for in section 5-2-203, reasonable attorney fees provided for in section 5-5-112, and the fee for a dishonored check provided for in section 5-2-202 (1)(e)(II).

(3)

[Editor’s note:
This version of subsection (3) is effective January 1, 2024.]
On a loan subject to the alternative charges authorized by this section, no other finance charge or any other charge or fee is permitted except as specifically provided for in this section and except for reasonable attorney fees provided for in section 5-5-112 and the fee for a dishonored check provided for in section 5-2-202 (1)(e)(II).

(4)

Intentionally left blank —Ed.

(a)

The acquisition charge authorized in this section shall be fully earned at the time the loan is made and shall not be subject to refund; except that, if the loan is prepaid in full, refinanced, or consolidated within the first sixty days, the first ten dollars of the acquisition charge shall be retained by the lender and the remainder of the acquisition charge shall be refunded at a rate of one-sixtieth of the remainder of the acquisition charge per day, beginning on the day after the date of the prepayment, refinancing, or consolidation and ending on the sixtieth day after the loan was made.

(b)

This subsection (4) is repealed, effective January 1, 2024.

(5)

[Editor’s note:
This version of subsection (5) is effective until January 1, 2024.]
Upon the prepayment of a loan made pursuant to this section, the unearned portion of the installment account handling charge shall be refunded to the consumer. The unearned portion of the installment account handling charge that is refunded shall be calculated pursuant to the provisions on rebate upon prepayment contained in section 5-2-211 on the date of refinancing; except that, for the purpose of computing this amount, no minimum charge described in section 5-2-201 shall be allowed.

(5)

[Editor’s note:
This version of subsection (5) is effective January 1, 2024.]
Upon prepayment of a loan made pursuant to this section, the unearned portion of the acquisition charge and the total monthly installment handling charge shall be refunded to the consumer. The unearned portion of these charges shall be calculated pursuant to the provisions on rebate upon prepayment contained in section 5-2-211 on the date of refinancing; except that, for the purpose of computing this amount, a minimum finance charge described in section 5-2-201 of no more than ten dollars is allowed if contracted with the consumer in the loan agreement.

(5.5)

[Editor’s note:
Subsection (5.5) is effective January 1, 2024.]

(a)

A lender shall require a consumer to fill out a loan application for every loan under this section and shall maintain the application on file. The application must be signed and dated by the consumer.

(b)

A lender shall require the consumer to provide a pay stub or other evidence of income in every application for a loan under this section and shall maintain this application on file. The pay stub or other evidence of income must have been issued or dated within forty-five days before the date of the application. If a lender requires a consumer to present a bank statement to secure a loan, the lender shall allow the consumer to delete from the statement the information regarding to whom the debits listed on the statement were payable. If the amount borrowed is not more than twenty-five percent of the consumer’s monthly gross income and benefits, as evidenced by a paycheck stub or otherwise substantiated, a lender is not obligated to investigate the consumer’s continued debt position, and the consumer’s ability to repay the loan need not be further demonstrated.

(c)

If a lender complies with the requirements of subsections (5.5)(a) and (5.5)(b) of this section, and the loan otherwise complies with this article 2 and other applicable law, neither the consumer’s inability to repay the loan nor the lender’s decision to obtain or not obtain additional information concerning the consumer’s creditworthiness shall be cause to determine that a loan is unconscionable.

(6)

The rates and charges permitted by this section shall not apply to deferred deposit loans subject to article 3.1 of this title.

(7)

A lender shall not take collateral from a consumer as security for payment for any loan made pursuant to this section.

(8)

[Editor’s note:
This version of subsection (8) is effective until January 1, 2024.]
A lender may not refinance a loan made pursuant to this section more than three times in one year.

(8)

[Editor’s note:
This version of subsection (8) is effective January 1, 2024.]
A lender may not refinance a loan made pursuant to this section more than once in one year.

Source: Section 5-2-214 — Alternative charges for loans not exceeding one thousand dollars, https://leg.­colorado.­gov/sites/default/files/images/olls/crs2023-title-05.­pdf (accessed Oct. 20, 2023).

Green check means up to date. Up to date

Current through Fall 2024

§ 5-2-214’s source at colorado​.gov