Second Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 24-0731.01 Josh Schultz x5486
HOUSE BILL 24-1148
House Committees Senate Committees
Finance
A BILL FOR AN ACT
C
ONCERNING A MORE INCLUSIV E CALCULATION OF THE FINANCE101
CHARGE APPLICABLE TO CERTAIN CONSUMER LENDING102
TRANSACTIONS, AND, IN CONNECTION THEREWITH , REQUIRING103
A MORE ACCURATE DISCLOSURE OF THE COST OF CREDIT FOR104
CERTAIN LOANS.105
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov.)
The bill amends the Colorado "Uniform Consumer Credit Code"
HOUSE SPONSORSHIP
Weissman and Mabrey,
SENATE SPONSORSHIP
(None),
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law. to change the terms and interest rates a nondepository institution may
charge in a consumer credit transaction.
For a consumer credit transaction in which a nondepository
institution makes a supervised loan or a consumer credit sale, the bill
amends the calculation of the total amount of the finance charge that the
nondepository institution may contract for and receive to include the total
cost of specific additional charges.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 5-1-301, add (29.5)2
as follows:3
5-1-301. General definitions. In addition to definitions appearing4
in subsequent articles, as used in this code, unless the context otherwise5
requires:6
(29.5) "N
ONDEPOSITORY INSTITUTION" MEANS A SUPERVISED7
LENDER OR SELLER THAT IS NOT:8
(a) A
BANK ORGANIZED UNDER THE "COLORADO BANKING CODE",9
ARTICLE 10.5 AND ARTICLES 101 TO 109 OF TITLE 11;10
(b) A
BANK ORGANIZED UNDER THE "NATIONAL BANK ACT", 1211
U.S.C.
SEC. 21 ET SEQ., AS AMENDED;12
(c) A
SAVINGS AND LOAN ASSOCIATION , AS DEFINED IN SECTION13
11-40-103;
OR14
(d) A
CREDIT UNION WHOSE ACCOUNTS ARE INSURED UNDER THE15
"F
EDERAL CREDIT UNION ACT", 12 U.S.C. SEC. 1751 ET SEQ., AS16
AMENDED.17
SECTION 2. In Colorado Revised Statutes, 5-2-201, amend (2)18
introductory portion and (3)(a); and add (3.1), (3.3), and (3.5) as follows:19
5-2-201. Finance charge for consumer credit transactions.20
(2) With respect to a supervised loan or a consumer credit sale, except21
HB24-1148-2- for a loan or sale pursuant to a revolving account OR FOR A LOAN OR A1
CONSUMER CREDIT SALE MADE BY A NONDEPOSITORY INSTITUTION , a2
supervised lender or seller may contract for and receive a finance charge,3
calculated according to the actuarial method, not exceeding the equivalent4
of the greater of either of the following:5
(3) (a) Except as provided in paragraph (b) of this subsection (3)6
SUBSECTION (3)(b) OF THIS SECTION, OR FOR A LOAN OR A CONSUMER7
CREDIT SALE MADE BY A NONDEPOSITORY INSTITUTION , the finance charge8
for a supervised loan or consumer credit sale pursuant to a revolving9
credit account, calculated according to the actuarial method, may not10
exceed twenty-one percent per year on the unpaid balance of the amount11
financed.12
(3.1) W
ITH RESPECT TO A SUPERVISED LOAN OR A CONSUMER13
CREDIT SALE MADE BY A NONDEPOSITORY INSTITUTION , EXCEPT AS SET14
FORTH IN SUBSECTION (3.3) OF THIS SECTION WITH RESPECT TO A15
SUPERVISED LOAN OR CONSUMER CREDIT SALE MADE PURSUANT TO A16
REVOLVING CREDIT ACCOUNT , A SUPERVISED LENDER OR SELLER MAY17
CONTRACT FOR AND RECEIVE A FINANCE CHARGE . THE AMOUNT OF THE18
FINANCE CHARGE, CALCULATED ACCORDING TO THE ACTUARIAL METHOD ,19
MUST NOT EXCEED THE EQUIVALENT OF THE GREATER OF EITHER OF THE20
FOLLOWING:21
(a) T
HE TOTAL OF:22
(I) A
N AMOUNT EQUAL TO THIRTY-SIX PERCENT PER YEAR ON THAT23
PART OF THE UNPAID BALANCES OF THE AMOUNT FINANCED THAT IS ONE24
THOUSAND DOLLARS OR LESS, MINUS THE TOTAL COST OF ALL ADDITIONAL25
CHARGES LISTED IN SUBSECTION (3.5) OF THIS SECTION;26
(II) A
N AMOUNT EQUAL TO TWENTY -ONE PERCENT PER YEAR ON27
HB24-1148
-3- THAT PART OF THE UNPAID BALANCES OF THE AMOUNT FINANCED THAT IS1
MORE THAN ONE THOUSAND DOLLARS BUT DOES NOT EXCEED THREE2
THOUSAND DOLLARS , MINUS THE TOTAL COST OF ALL ADDITIONAL3
CHARGES LISTED IN SUBSECTION (3.5) OF THIS SECTION; AND4
(III) A
N AMOUNT EQUAL TO FIFTEEN PERCENT PER YEAR ON THAT5
PART OF THE UNPAID BALANCES OF THE AMOUNT FINANCED THAT IS MORE6
THAN THREE THOUSAND DOLLARS , MINUS THE TOTAL COST OF ALL7
ADDITIONAL CHARGES LISTED IN SUBSECTION (3.5) OF THIS SECTION; OR8
(b) A
N AMOUNT EQUAL TO TWENTY -ONE PERCENT PER YEAR ON9
THE UNPAID BALANCES OF THE AMOUNT FINANCED , MINUS THE TOTAL10
COST OF ALL ADDITIONAL CHARGES LISTED IN SUBSECTION (3.5) OF THIS11
SECTION.12
(3.3) (a) E
XCEPT AS PROVIDED IN SUBSECTION (3.3)(b) OF THIS13
SECTION, THE TOTAL AMOUNT OF THE FINANCE CHARGE FOR A SUPERVISED14
LOAN OR CONSUMER CREDIT SALE PURSUANT TO A REVOLVING CREDIT15
ACCOUNT, CALCULATED ACCORDING TO THE ACTUARIAL METHOD , MAY16
NOT EXCEED TWENTY-ONE PERCENT PER YEAR ON THE UNPAID BALANCE17
OF THE AMOUNT FINANCED, MINUS THE TOTAL COST OF ALL ADDITIONAL18
CHARGES LISTED IN SUBSECTION (3.5) OF THIS SECTION.19
(b) N
OTWITHSTANDING SUBSECTION (3.3)(a) OF THIS SECTION, IF20
THERE IS AN UNPAID BALANCE ON THE DATE ON WHICH THE FINANCE21
CHARGE IS APPLIED, THE CREDITOR MAY CONTRACT FOR AND RECEIVE A22
MINIMUM FINANCE CHARGE NOT EXCEEDING FIFTY CENTS .23
(3.5) I
F A SUPERVISED LENDER OR SELLER THAT IS A24
NONDEPOSITORY INSTITUTION CONTRACTS FOR ANY OF THE FOLLOWING25
CHARGES, THE TOTAL AMOUNT OF ALL OF THE CHARGES MUST BE26
INCLUDED IN THE CALCULATION OF THE FINANCE CHARGE PURSUANT TO27
HB24-1148
-4- SUBSECTION (3.1) OR (3.3) OF THIS SECTION:1
(a) A
NY CREDIT INSURANCE PREMIUM OR FEE , ANY CHARGE FOR2
SINGLE PREMIUM CREDIT INSURANCE, ANY FEE FOR A DEBT CANCELLATION3
CONTRACT, OR ANY FEE FOR A DEBT SUSPENSION AGREEMENT ;4
(b) A
NY OTHER CHARGES FOR INSURANCE LISTED IN SECTION5
5-2-202 (1)(b)
AND (3);6
(c) A
NY FEE FOR A CREDIT-RELATED ANCILLARY PRODUCT SOLD IN7
CONNECTION WITH THE CREDIT TRANSACTION ;8
(d) A
NY APPLICATION FEE CHARGED TO A CONSUMER WHO APPLIES9
FOR CONSUMER CREDIT; AND10
(e) C
HARGES FOR OTHER BENEFITS CONFERRED ON THE CONSUMER11
AS DESCRIBED IN SECTION 5-2-202 (1)(d).12
SECTION 3. In Colorado Revised Statutes, 5-2-202, amend (1)13
introductory portion as follows:14
5-2-202. Additional charges. (1) S
UBJECT TO THE PROVISIONS OF15
SECTION 5-2-201 (3.5), in addition to the finance charge permitted by this16
article 2 and in a consumer lease, a creditor may contract for and receive17
the following additional charges in connection with a consumer credit18
transaction:19
SECTION 4. Act subject to petition - effective date. This act20
takes effect at 12:01 a.m. on the day following the expiration of the21
ninety-day period after final adjournment of the general assembly; except22
that, if a referendum petition is filed pursuant to section 1 (3) of article V23
of the state constitution against this act or an item, section, or part of this24
act within such period, then the act, item, section, or part will not take25
effect unless approved by the people at the general election to be held in26
HB24-1148
-5- November 2024 and, in such case, will take effect on the date of the1
official declaration of the vote thereon by the governor.2
HB24-1148
-6-