Instant Cash Advance Colorado
Instant Advance Cash Loans Online Colorado
Colorado Payday Loans Regulations and Principles
The constraints of the economic meltdown are all over and Colorado residents are not spared. They also find it hard to thrive on less money just like the rest of USA citizens. In fact, payday loan borrowers are increasing in Colorado by the day and the figures may never get smaller any sooner if economic fortunes and challenges remain as they are today.
The small-size, short-term instant cash advance Colorado payday loans help residents of the state to settle burning financial needs that arise before they get their next paychecks. The loans are emergency solutions to urgent needs, such as unanticipated bills, when there are no savings to help out, bridging the gap between any two pay-dates.
Who Regulates Colorado Payday Loans
The Uniform Consumer Credit-Code (UCCC) is a body of Colorado laws regulating the terms, conditions and requirements of all consumer credit funds in Colorado. The laws set the maximum charges and rates and obligate all lenders to disclose the costs of their credit plans for easy, convenient and trouble-free shopping for suitable rates by consumers. The laws also specify the actions to be taken against defaulters. Payday loans fall under the jurisdiction of Colorado UCCC and both lenders and consumers are required to act within the provisions of UCCC regulations. When borrowers have any complaints against Colorado payday loans lenders, they are required to report the matters to the UCCC administrator for investigations, legal action or disciplinary measures on law violators. Borrowers are also allowed to introduce legal action against lenders through the UCCC.
Colorado Payday Loan Regulations
The state of Colorado enacted laws in favor of payday loans only recently. However, the laws have been carefully written to protect both the lenders and the borrowers from the worst that can ever happen in the realm of payday loans. While enacting the laws, the state paid close attention to regulations in other states with the intention of preventing predatory lender actions and borrower abuses. For instance, the laws have strictly defined the maximum percentage interest rates that lenders can charge. The annual interest rate cannot go beyond 40%. This is a very big control of lender predatory tendencies of charging exorbitant rates.
Colorado payday loans companies are also legally mandated to adhere by a repayment period of not less than six months. This is an exciting regulation. It departs from the common trend of shorter repayment periods that has pushed many borrowers into vicious circles. With this regulation, the borrower is not obligated to repay the loan completely with the next paycheck. Borrowers are relieved of having to repay for the high interest loan in only a few weeks, which is often difficult.
While the payday loan laws in Colorado are bent to protect the borrower from exploitation, the laws have also been formulated to protect lenders from going out of business. Therefore, the laws allow lending companies to charge a $75 origination fee, 20% finance charge, and a $7.5 finance charge for every $100 borrowed above $300. That is, the borrower will only pay 20% finance charge for borrowing $300 or less, but will have to pay the extra $7.5 charge on every $100 above the $300 maximum limit. This regulation allows lending companies to make profits and remain in business. There are always a huge number of Colorado residents who are in need of urgent cash and they would suffer if lenders close shops.
In order to reduce the numbers of defaulting borrowers, Colorado payday loans regulations require the borrower to take one loan at a time. It is illegal to take two different payday loans from two different lenders. Essentially, borrowers are obligated to evaluate their financial needs before going for a payday loan in order to take a single loan that will cover the entire need. However, the maximum that a borrower can take within 40 days is only $500. This law controls the possibility of continuous borrowing from paycheck to paycheck because borrowers have to wait for more than a month before getting another payday loan.
Obtaining Payday Loans in Colorado
Taking payday loans in Colorado is much easier. Even individuals who have been barred from accessing other credit forms can apply and get the money. Lenders in Colorado will simply ask the borrowers to provide verifiable proofs of steady income, provide identification details and the details of their checking accounts. Most lenders will not conduct complete credit checks. Once the lenders have verified that the checking accounts of the borrowers can accept electronic withdrawals or checks during loan repayment, they will release the requested cash. When the borrower’s next payday comes, the lender will recover the whole amount lent together with finance charges and interests by simply cashing the check drafted by the borrower or deducting the due amount from the borrower’s checking account.
In Colorado, borrowers are at liberty to either pay the whole loan during the next payday, or pay the entire finance charge and push forward loan repayment to a convenient later date. The borrower also has the option of settling the loan in cash before the agreed period comes and clear the debt well in time. Sadly, the borrower will have to meet extra charges if on cashing the drafted check the lender finds insufficient funds in the borrower’s checking account. Moreover, the borrower’s bank will also levy additional charges on the borrower in such a case.
Why Colorado Residents Take Payday Loans
Payday loans come with a number of benefits to borrowers. The loans have minimal requirements and high approval rates, allowing access to much needed cash without hassles. The loans are usually available for use within 24 hours of application, ensuring quick response to pressing financial needs.
By allowing even those who are not eligible for other credit options to get cash, the loans are valuable to almost all income earners in Colorado. Moreover, individuals who do not have any forms of savings get immediate access to funds through payday loans.
However, Colorado residents are advised to use these loans wisely because they are very expensive and may be difficult to repay. Borrowers must also recognize the huge debt that can come with payday loans, which may even explode to unmanageable levels if not repaid quickly. Fundamentally, Colorado payday loans should be obtained ONLY when necessary.