DENVER—Colorado Attorney General John Suthers today issued two composite reports on Colorado’s calendar year 2013 subprime consumer lending activity. The reports contain data on 250 companies at 749 licensed locations engaged in deferred deposit or “payday” loan and traditional supervised loan activity. The total volume of supervised lending overall significantly increased due in large part to increased servicing activity with a lessor increase in origination activity. As of December 31, 2013, licensees continued to collect and service almost $3.5 billion in outstanding consumer credit transactions including consumer loans, credit sales, and leases.
By law, licensed lenders are required to file these reports annually, which are then compiled in aggregate form. 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 three licensed lenders from 2012, while the number of payday loans remained consistent showing an increase of 9.13% from 2012.
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 is greater than 12% per year. These loans are generally made by finance companies, insurance premium finance companies and mortgage companies. These types of loans 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 an increase by eight licensed lending companies from 2012, while the number of traditional supervised loans remained consistent showing only an increase of 2.79% from 2012.
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by licensees engaged in this type of lending activity, the data received was uninformative and a composite report will not be published.
# # #