Colorado § 5-3.1-122 Unconscionability

Colorado Statutes

§ 5-3.1-122 — Unconscionability

Colorado § 5-3.1-122

Title 05Consumer

Art.Deferred Deposit Loan Act

This text of Colorado § 5-3.1-122 (Unconscionability) is published on Counsel Stack Legal Research, covering Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Colo. Rev. Stat. § 5-3.1-122 (2026).

Text

(1)In applying the provisions of sections 5-5-109 and 5-6-112 to the actions of a lender, consideration shall be given to the following, among other factors:

(a)The financial benefits of the loan to the consumer and the level of risk incurred by the lender in extending credit;

(b)The absence of collateral other than the instrument executed by the consumer payable to the lender;

(c)The relation between the amount and terms of credit granted and the cost of making the loan.

(2)A lender shall require a consumer to fill out a loan application at least once in each twelve-month period of time and shall maintain this application on file. The application shall be signed and dated by the consumer.

(3)(a) A lender shall require the consumer to provide a pay stub or other evidence

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(1) In applying the provisions of sections 5-5-109 and 5-6-112 to the actions of a lender, consideration shall be given to the
following, among other factors:

(a) The financial benefits of the loan to the consumer and the level of risk
incurred by the lender in extending credit;

(b) The absence of collateral other than the instrument executed by the
consumer payable to the lender;

(c) The relation between the amount and terms of credit granted and the
cost of making the loan.

(2) A lender shall require a consumer to fill out a loan application at least
once in each twelve-month period of time and shall maintain this application on file.
The application shall be signed and dated by the consumer.

(3) (a) A lender shall require the consumer to provide a pay stub or other
evidence of income at least once each twelve-month period. Such evidence shall
not be over forty-five days old when presented. If a lender requires a consumer to
present a bank statement to secure a loan, the lender shall allow the consumer to
delete from the statement the information regarding to whom the debits listed on
the statement were payable.

(b) If the amount borrowed is not more than twenty-five percent of the
consumer's monthly gross income and benefits, as evidenced by a paycheck stub or
otherwise substantiated, a lender shall not be obligated to investigate the
consumer's continued debt position, and the consumer's ability to repay the loan
need not be further demonstrated.

(4) If a lender complies with the requirements of subsections (2) and (3) of
this section, and the deferred deposit loan otherwise complies with this article and
other applicable law, neither the consumer's inability to repay the loan nor the
lender's decision to obtain or not obtain additional information concerning the
consumer's creditworthiness shall be cause to determine that a loan is unconscionable.