Colorado § 5-2-204 Deferral charges - rules

Colorado Statutes

§ 5-2-204 — Deferral charges - rules

Colorado·Title 05 Consumer·Art. Finance Charges and Related Provisions

(1)With respect to a precomputed consumer credit transaction, the parties before or after default may agree in writing to a deferral of all or part of one or more unpaid installments, and the creditor may make and collect a charge not exceeding the rate previously stated to the consumer pursuant to the provisions on disclosure contained in section 5-3-101 applied to the amount or amounts deferred for the period of deferral calculated without regard to differences in the lengths of months, but proportionally for a part of a month, counting each day as one-thirtieth of a month. A deferral charge may be collected at the time it is assessed or at any time thereafter.

(2)The creditor, in addition to the deferral charge, may make appropriate additional charges described in section 5-

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(1) With respect to a precomputed
consumer credit transaction, the parties before or after default may agree in
writing to a deferral of all or part of one or more unpaid installments, and the
creditor may make and collect a charge not exceeding the rate previously stated to
the consumer pursuant to the provisions on disclosure contained in section 5-3-101
applied to the amount or amounts deferred for the period of deferral calculated
without regard to differences in the lengths of months, but proportionally for a part
of a month, counting each day as one-thirtieth of a month. A deferral charge may be
collected at the time it is assessed or at any time thereafter.

(2) The creditor, in addition to the deferral charge, may make appropriate
additional charges described in section 5-2-202, and the amount of these charges
that is not paid in cash may be added to the amount deferred for the purpose of
calculating the deferral charge.

(3) The parties may agree in writing at the time of a precomputed consumer
credit transaction that, if an installment is not paid within ten days after its due
date, the creditor may unilaterally grant a deferral and make charges as provided in
this section. No deferral charge may be made for a period after the date that the
creditor elects to accelerate the maturity of the agreement.

(4) A delinquency charge made by the creditor on an installment may not be
retained if a deferral charge is made pursuant to this section with respect to the
period of delinquency.

(5) A deferral charge made according to this section is earned pro rata
during the period in which no installment is scheduled to be paid by reason of the
deferral and is fully earned on the last day of that period.

(6) The administrator may adopt rules regarding deferral charges for
nonrecourse consumer credit transactions that have no periodic payments and are
secured by an unvested, contingent future interest in the potential net proceeds of
a settlement or judgment obtained from the consumer's associated legal claim.

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