Colorado Usury Laws
Colorado currently has one of the higher general usury rates in the country -- for non-consumer loans. The general usury rate in this regard (for non-consumer loans) is set at 45% per annum. The usury rate established for consumer or personal loans is set at 12% in Colorado at the present time. (In fact, some of the western states currently do have some of the most liberal practices and statutes currently on the books when it comes to usury laws and personal loan interest rate limitations.)
The statutes relating to usury rates on personal, consumer loans currently are codified in Title Six of the Colorado Revised Statutes. Indeed, these section deals with all matters pertaining to consumer financial transactions.
Under Colorado law, there can be imposed both criminal and well as civil penalties involving violations of the statutes pertaining to interest rate regulation and usurious interest rates. In some instances, the violation of these statutory provisions can result in the initiation of felony criminal proceedings.
On the civil side, Colorado law provides for the imposition of fines when it comes to a violation of the laws establishing generally usury rates on personal and non-commercial or consumer loans. In addition, in the vast majority of cases, courts that have been confronted with personal loans that have usurious interest rates attached, that have interest rates attached that are in violation of the law, have struck down the loan agreements in their entirety. Courts have found these contracts to be illegal and hence unenforceable in the State of Colorado.
Loans from certain types of financial institution are not included in the general statutory schemes in Colorado pertaining to usurious interest rates. These other types of loans (for example, loans made by banks, savings and loans or credit unions) are subject to other regulatory provisions not included within the laws in Colorado governing usury.
Do keep in mind that the statutes and companion regulations pertaining to usury loan rates and lending practices in Colorado are subject to change as the legislature and those appropriate administrative agencies within the state deem fit and appropriate. While we do make every effort possible to keep this data and information update, you do need to understand that the statutes and regulations pertaining to usury loan rates and related practices in Colorado can and do change over time.
Finally, via this information articles, we are not providing you with legal advice of any type. If you have any additional questions or concerns regarding usury laws in Colorado at this time, you should contact a qualified attorney. Again, the materials presented in this article are for informational purposes only.