News About the Ever-Changing Payday Advance Industry
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Payday loans are still legal in Colorado on paper, but the high-cost product is effectively gone. In 2018 voters passed Proposition 111, capping the all-in APR on payday (deferred-deposit) loans at 36% as of February 1, 2019. With every fee folded into that cap and a 6-month minimum term, traditional storefront payday lending became unprofitable and largely left the state.
| Status | Legal, but capped at 36% APR — high-cost payday effectively ended |
|---|---|
| APR cap | 36%, all-inclusive (Proposition 111, 2018) |
| Maximum loan | $500 (Deferred Deposit Loan Act) |
| Minimum term | 6 months (180 days) |
| Separate fees | Eliminated — origination and maintenance fees fold into the 36% cap |
| Rollovers | Not applicable — loans are installment, not single-payment |
| Right to cancel | By 5 p.m. the next business day, at no cost |
| Regulator | Colorado Attorney General — UCCC Administrator |
| Law | Deferred Deposit Loan Act, C.R.S. 5-3.1-101+; Proposition 111 (2018); HB23-1229 |
Consumer lending in Colorado is overseen by the Attorney General's UCCC Administrator. To report a violation or an illegal lender, use the online complaint form.
With the 36% cap, look first to a credit-union small loan or payday-alternative loan, an employer paycheck advance, or nonprofit credit counseling. See our guide to payday loans and alternatives.
A lender can garnish wages in Colorado only after it sues and wins a court judgment, and federal law then caps how much can be taken. Colorado does not run a statewide payday-loan database, so limits on how many loans you can hold are harder to track from lender to lender. Your rights when you cannot repay are set by a mix of federal and state law — these guides explain how they work:
Disclaimer: general information, not legal or financial advice. Laws change — verify the current rules with the Colorado Attorney General — Administrator of the Uniform Consumer Credit Code (UCCC) before borrowing. Last reviewed 2026.
Sources
They are legal in name, but a voter-approved 36% all-in APR cap (Proposition 111, 2018) made the traditional high-cost payday product unprofitable, so storefront payday lending has largely disappeared.
36% APR, all-inclusive — interest and every fee must fit within that rate. The cap took effect February 1, 2019.
Not the old single-payment kind. Under the law, these loans must run at least 6 months as installment loans, capped at 36% APR.
The Administrator of the Uniform Consumer Credit Code, within the Colorado Attorney General's office.
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