§ 5-3.1-101. Short Title
This article shall be known and may be cited as the “Deferred Deposit Loan Act”. Source: L. 2000: Entire article added, p. 439, § 1, effective July 1.
§ 5-3.1-101.5. Legislative Declaration
The people of this state find and declare that payday lenders are charging up to two hundred percent annually for payday loans and that excess charges on such loans can lead Colorado families into a debt trap of repeat borrowing. It is the intent of the people to lower the maximum authorized finance charge for […]
§ 5-3.1-102. Definitions
As used in this article, unless the context otherwise requires: “Administrator” means the administrator of the “Uniform Consumer Credit Code”. (1.5) “Annual percentage rate” means an annual percentage rate as determined pursuant to section 107 of the federal “Truth in Lending Act”, 15 U.S.C. sec. 1601 et seq. All finance charges shall be included in […]
§ 5-3.1-103. Written Agreement Requirements
Each deferred deposit loan transaction and renewal shall be documented by a written agreement signed by both the lender and consumer. The written agreement shall contain the name of the consumer; the transaction date; the amount of the instrument; the annual percentage rate charged; a statement of the total amount of finance charges charged, expressed […]
§ 5-3.1-104. Notice to Consumers
A lender shall provide the following notice in a prominent place on each loan agreement in at least ten-point type: A DEFERRED DEPOSIT LOAN IS NOT INTENDED TO MEET LONG-TERM FINANCIAL NEEDS. A DEFERRED DEPOSIT LOAN SHOULD BE USED ONLY TO MEET SHORT-TERM CASH NEEDS. RENEWING THE DEFERRED DEPOSIT LOAN RATHER THAN PAYING THE DEBT […]
§ 5-3.1-105. Authorized Charges
A lender may charge a finance charge for each deferred deposit loan or payday loan that must not exceed an annual percentage rate of thirty-six percent. If the loan is prepaid prior to the maturity of the loan term, the lender shall refund to the consumer a prorated portion of the finance charge based upon […]
§ 5-3.1-106. Maximum Loan Amount – Right to Rescind
A lender shall not lend an amount greater than five hundred dollars nor shall the amount financed exceed five hundred dollars by any one lender at any time to a consumer. Nothing in this subsection (1) shall preclude a lender from making more than one loan to a consumer so long as the total amount […]
§ 5-3.1-107. Multiple Outstanding Transactions Notice
A lender shall provide the following notice in a prominent place on each deferred deposit loan agreement in at least ten-point type: STATE LAW PROHIBITS DEFERRED DEPOSIT LOANS EXCEEDING FIVE HUNDRED DOLLARS ($500) TOTAL DEBT PLUS APPLICABLE FINANCE CHARGES PERMITTED BY LAW FROM A DEFERRED DEPOSIT LENDER. EXCEEDING THIS AMOUNT MAY CREATE FINANCIAL HARDSHIPS FOR […]
§ 5-3.1-108. Renewal – New Loan – Consecutive Loans – Payment Plan – Definitions
A deferred deposit loan shall not be renewed more than once. After such renewal, the consumer shall pay the debt in cash or its equivalent. If the consumer does not pay the debt, then the lender may deposit the consumer’s instrument. Upon renewal of a deferred deposit loan or payday loan, the lender may assess […]
§ 5-3.1-109. Form of Loan Proceeds
A lender may pay the proceeds from a deferred deposit loan to the consumer in the form of a business instrument, money order, cash, stored value card, internet transfer, or authorized automated clearinghouse transaction. The consumer shall not be charged an additional finance charge or fee for cashing the lender’s business instrument or for negotiating […]
§ 5-3.1-110. Endorsement of Instrument
A lender shall not negotiate or present an instrument for payment unless the instrument is endorsed with the actual business name of the lender. Source: L. 2000: Entire article added, p. 442, § 1, effective July 1.
§ 5-3.1-111. Redemption of Instrument
Prior to the lender negotiating or presenting the instrument, the consumer shall have the right to redeem any instrument held by a lender as a result of a deferred deposit loan if the consumer pays the full amount of the instrument to the lender. Source: L. 2000: Entire article added, p. 442, § 1, effective […]
§ 5-3.1-112. Authorized Dishonored Instrument Charge
If an instrument held by a lender as a result of a deferred deposit loan is returned unpaid to the lender from a payor financial institution due to insufficient funds, a closed account, a stop-payment order, or any other reason, not including a bank error, the lender shall have the right to exercise all civil […]
§ 5-3.1-113. Posting of Charges
Any lender offering a deferred deposit loan shall post at any place of business where deferred deposit loans are made a notice of the finance charges imposed for such deferred deposit loans. Source: L. 2000: Entire article added, p. 442, § 1, effective July 1. L. 2003: Entire section amended, p. 1894, § 7, effective […]
§ 5-3.1-114. Notice on Assignment or Sale of Instruments
Prior to sale or assignment of instruments held by the lender as a result of a deferred deposit loan, the lender shall place a notice on the instrument in at least ten-point type to read: THIS IS A DEFERRED DEPOSIT LOAN INSTRUMENT. Source: L. 2000: Entire article added, p. 442, § 1, effective July 1.
§ 5-3.1-115. Records and Annual Reports
A lender shall maintain records and file an annual report in accordance with section 5-2-304. Source: L. 2000: Entire article added, p. 442, § 1, effective July 1. L. 2001: Entire section amended, p. 30, § 10, effective March 9.
§ 5-3.1-116. License Requirement
In accordance with section 5-2-301, no person shall engage in the business of deferred deposit loans without having first obtained a supervised lender’s license pursuant to section 5-2-302. A separate license shall be required for each location where such business is conducted. Source: L. 2000: Entire article added, p. 442, § 1, effective July 1. […]
§ 5-3.1-117. Examination and Investigation
A lender may be examined and investigated in accordance with section 5-2-305. Source: L. 2000: Entire article added, p. 443, § 1, effective July 1. L. 2001: Entire section amended, p. 30, § 12, effective March 9.
§ 5-3.1-118. Denial of License – Discipline
The administrator may deny a license or discipline a lender in accordance with sections 5-2-302, 5-2-303, and 5-2-306. If the administrator finds that a lender has violated the code, articles 1 to 9 of this title, the administrator shall notify the lender in writing of such violations and the actions the lender must take to […]
§ 5-3.1-119. Applicability of Other Provisions of This Title
The provisions of the code, articles 1 to 9 of this title, apply to a lender unless such provisions are inconsistent with this article. Source: L. 2000: Entire article added, p. 443, § 1, effective July 1.