§ 5-3-208 — Balloon payments

Colorado § 5-3-208

• Jurisdiction: Colorado
• Title 05: Consumer
• Art.: Regulation of Agreements and Practices

Text

With respect to a consumer credit transaction
other than one pursuant to a revolving credit account, if any scheduled payment is
more than twice as large as the average of all other regularly scheduled payments,
the consumer has the right to refinance the amount of that payment at the time it is
due at the creditor's prevailing rates for such type of transaction if the consumer
meets the creditor's normal credit standards and if the creditor is, at that time, in
the business of making such transactions. The creditor shall disclose this right in
writing to the consumer at the time the transaction is entered into. These provisions
do not apply to the extent that the payment schedule is adjusted to the seasonal or
irregular income of the consumer. This section shall not apply to a transaction of a
class defined by rule of the administrator promulgated in accordance with article 4
of title 24, C.R.S., as not requiring for the protection of the consumer his or her right
to refinance as provided in this section.

Legislative History

Source: L. 2000: Entire article R&RE, p. 1220, � 1, effective July 1.