The state of Colorado is taking up the fight against faulty payday lenders much like other states in the union. For many of the poor people in the state who have suffered through the financial recession, this is a welcome change to the status quo. Rather than allowing payday lenders to infiltrate the state’s democratic process with lobbying efforts, the payday loan laws in Colorado have become a bulwark for the citizens of the state who are trying to protect themselves from suffering under the strain of debt. Below is a brief explanation of the Colorado laws for you to make your own educated decisions.

Licensing Payday Loan Laws in Colorado

Any state trying to protect their constituents should first look to licensing agreements to make sure that they are all properly in order. Creating a funnel at the very earliest stages of the payday loan industry, such as requiring licenses to weed out poor quality lenders, is one of the best ways to avoid any kind of major problems. The licensing payday loan laws in Colorado have been a big part of the fight to make it safer for citizens to get credit and pay for the things they need. The companies, such as CheckCity, have been able to get a license by complying with many of the rules. This is the only online company licensed in the state, which should tell you something about the quality that the government allows to be a part of this process. The storefront companies must also pass many of these same tests.

Protection through Payday Loan Laws in Colorado

The consumers of payday loans in Colorado have a number of protections at their disposal that many other states cannot use. First of all, the payday loan laws in Colorado stipulate that each borrower can only have one outstanding lender at a time. This means that someone who wants to borrow money to pay off another lender will be unable to do this. This makes sure that people do not fall under the payday loan trap that has ensnared so many people in the state and the country before.

As a further evidence to the protection through payday loan laws in Colorado, the period of time that a loan is offered is far extended compared with others. Most require 15 days for a loan, but the state of Colorado makes the exception of allowing 40 days to offer more protection.