DENVER—The Consumer Credit Unit of the Colorado Attorney General’s Office today issued two composite reports on Colorado’s calendar year 2012 subprime consumer lending activity. The reports contain data on 245 companies at 747 licensed locations making deferred deposit or “payday” loans and traditional supervised loans. Licensed lenders are required by law to file these reports annually, which are then compiled in aggregate form. Overall, the reports show the total volume of supervised lending remained consistent with a slight decrease of 1.21% from 2011. As of December 31, 2012 licensees continued to collect and service more than $3 billion in outstanding consumer credit transactions including consumer loans, credit sales, and leases.
Payday loans are limited by law to a maximum loan amount of $500 with a minimum loan term of six months. The allowable fees for payday loans include an origination fee, 45% interest, and monthly maintenance fees. The law requires lenders to refund a portion of the fees upon prepayment in full prior to maturity. The report for payday loans indicates that the number of licensed payday lending companies decreased by 16% from 2011, while the number of payday loans remained consistent showing only a slight decrease of .78% from 2011.
The supervised lender report contains data on traditional supervised loans. Traditional supervised loans are consumer loans made for personal, household, or non-business related purposes in which the contracted Annual Percentage Rate (APR) is greater than 12% per year. These loans are generally made by finance companies, insurance premium finance companies and mortgage companies. Loan types may include unsecured loans, loans secured by personal property, automobile loans, and junior lien mortgage loans. The report for traditional supervised loans indicated that the number of licensed traditional supervised lending companies remained consistent with a slight decrease of 3.33% from 2011, while the number of traditional supervised loans remained consistent showing only a slight increase of 2.36% from 2011.
The Attorney General’s Office has previously reported data on small-installment loans. However, due to the very limited data reported by licensees engaged in this type of lending activity, the data received was uninformative and a composite report will not be published.
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