What a payday loan costs — before Colorado’s rules
A payday loan typically costs $15–$20 per $100 borrowed for a two-week term — roughly 400% APR — and is due as a single lump sum on your next payday. That single-payment structure, not the fee on any one loan, is the trap: most fees come from borrowers who cannot clear the balance in one go and roll it over. Where a state caps rates below payday levels, licensed payday lending disappears and a loan above the cap is generally void — not legally collectible, whatever the contract says.
The law in Colorado
- Rate cap
- 36% APR cap on payday/deferred-deposit loans, effective February 1, 2019.
- Key law
- Colorado Proposition 111 (2018), amending the Deferred Deposit Loan Act; enforced via the UCCC by the Attorney General.
- Enforcement
- The UCCC Administrator (AG’s office) licenses lenders and disciplines them; in November 2025 a federal appeals court upheld Colorado’s authority to apply its rate caps to out-of-state loans (the DIDMCA opt-out litigation).
Proposition 111 passed in 2018 with 77% of the vote, imposing the 36% cap on February 1, 2019.
What it means for a Colorado borrower
Loans above 36% APR violate state law, so payday and most tribal high-interest loans are challengeable and generally unenforceable. Colorado actively defends its cap against out-of-state and evasion structures.
If you already have a payday loan in Colorado
A loan that violates Colorado’s rate limits may be partly or fully unenforceable — which changes your options with the lender and any collector. This is general information, not legal advice.
- File a complaint with the Colorado Attorney General’s UCCC Administrator.
- Verify lender licensing — an unlicensed over-cap loan may be void.
Cheaper first — try these before a payday loan in Colorado
Payday Loans and tribal lenders in Colorado
Many online lenders that market payday loans to Colorado residents are tribal lenders arguing their sovereignty places them outside state rate caps — a separate legal question this site tracks in depth. For which tribal brands lend to Colorado residents and how state law applies to them, see the Colorado tribal-lending page.
Tribal loans in Colorado →Frequently asked questions
Does an online or tribal lender have to follow Colorado's payday loan rules?
Colorado applies its rules to loans made to its residents, wherever the lender sits. Tribal lenders argue that sovereign immunity puts them outside state rate caps — an argument courts have accepted in some cases and rejected in others. For which tribal brands lend to Colorado residents and how the state treats them, see the Colorado tribal-loan page.
What can I do about a payday loan I already have in Colorado?
Because Colorado restricts high-cost payday loans, a loan that exceeds the state limit may be partly or fully uncollectible — so find out before you pay a collector anything more. The steps on this page start with the lender's license. This is general information, not legal advice.