What a title loan costs — before Colorado’s rules
A title loan is usually a single-payment loan due in 15–30 days at around 25% per month — roughly 300% APR — secured by your vehicle. The defining risk is not the rate but the collateral: miss a payment and the lender can repossess the car, and research finds about one in five borrowers eventually loses the vehicle. Where a state caps rates low, single-payment title lending is not offered and a loan above the cap is generally void.
The law in Colorado
- Rate cap
- Graduated supervised-loan cap under the Colorado UCCC: max 36%/yr on the balance up to $1,000, 21% on $1,000–$3,000, and 15% above $3,000 (C.R.S. § 5-2-201).
- Key law
- Colorado Uniform Consumer Credit Code (UCCC), C.R.S. Title 5, esp. § 5-2-201 and § 5-2-302 (supervised-lender license).
- Enforcement
- Administered by the UCCC Administrator within the Colorado Attorney General’s Office (Consumer Credit Unit); supervised lenders must be licensed and the AG takes action against usurious/unlicensed consumer lending.
Colorado’s UCCC (C.R.S. § 5-2-201) caps supervised loans at a graduated maximum of 36% (falling to 21% and 15% on higher balances), leaving no legal room for a triple-digit title loan.
What it means for a Colorado borrower
Colorado has no special law authorizing triple-digit car title loans the way “open” states do. Any title-secured loan is treated as a regular supervised loan under the UCCC, where the rate ceiling tops out at 36% and drops to 15–21% on larger balances. Those caps make the standard high-cost title loan unprofitable, so it effectively is not offered legally.
If you already have a title loan in Colorado
A loan that violates Colorado’s ban may be partly or fully unenforceable — which changes your options with the lender and any collector. This is general information, not legal advice.
- Check whether the lender is licensed in Colorado — many high-cost online lenders are not.
- Revoke ACH authorization in writing to stop automatic withdrawals from your account.
- File a complaint with the Colorado attorney general and the CFPB.
- Ask whether the balance is even collectable under Colorado law before you pay a collector.
Cheaper first — try these before a title loan in Colorado
Title Loans and tribal lenders in Colorado
Many online lenders that market title 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
Are title loans legal in Colorado?
In Colorado, a high-cost single-payment title loan is not legally viable. The state’s rate cap or an outright ban makes a ~300% APR title loan void or unavailable, so licensed title lenders do not operate — and a lender that lends anyway is on weak legal footing.
What is the maximum title loan rate in Colorado?
Graduated supervised-loan cap under the Colorado UCCC: max 36%/yr on the balance up to $1,000, 21% on $1,000–$3,000, and 15% above $3,000 (C.R.S. § 5-2-201).
What can I do about a title loan I already have in Colorado?
Because Colorado effectively bans high-cost title loans, a loan that exceeds the state limit may be partly or fully uncollectible. Check whether the lender is licensed in Colorado — many high-cost online lenders are not. This is general information, not legal advice.