This weeks article is going to cover everything involving Colorado and payday loan debt.
We will take a look at the current payday loan laws, how these loans work and how to deal with these companies safely without ending up in a payday loan trap!
Colorado Payday Loan Laws
Both storefront and online payday loans are legal in Colorado and are strictly regulated.
The maximum amount of money you can borrow is $500.00 and this must be for a minimum of 6 months in length. These loans have no maximum length limits and you may take out back to back or multiple payday loans but the total amount at any given time is $500.00.
The interest charged for the loan would be 20% of the first $300.00 of the loan with a $7.50 charge per $100.00 above current interest rates borrowed for the amounts above $300.00
You may roll over (extend) your loan and the interest charge for doing this is set at 45% of the loan which can get extremely expensive in a relatively short period of time, especially when dealing with multiple loans.
How these companies can collect is limited to very strict practices.
If a borrower should default on their payday loan or loans the company cannot take a borrower to court and sue them for the monies owed, nor can they garnish any wages as long as the borrower has not closed their checking account while the loan is active.
If the borrower has closed the account before the monies owed are satisfied the lender then may go ahead and pursue legal recourse including any and all legal bills acquired in the proceedings.
Beware of the online sharks!
Even with strict lending laws many online payday loan companies will completely disregard any state laws and go for your jugular so to speak by charging you outrageous interest charges and ask for direct access to your checking accounts which can lead to repeated withdrawals from your account.
Before venturing into any agreements online it is best to read our article Payday Loans Online
This article will bring you up to speed on how online loans work and what to watch out for when using these types of companies online.
It is our opinion that these loans can be used safely if you pay them off in full on the first due date, never extend them and stay away from the online companies
We hope this article helps you understand how payday loans work in Colorado and what to do if you find yourself in trouble with payday loan debt.
As always, we want to hear from you!
If you have a question or comment please leave it below in the comments section and we will promptly address it!
If you need immediate assistance with your payday loan debt please give us a call toll-free at 1-877-280-5100