Colorado § 5-2-202 - Additional charges.

§ 5-2-202. Additional charges.

(1) In addition to the finance charge permitted by this article 2 and in a consumer lease, a creditor may contract for and receive the following additional charges in connection with a consumer credit transaction:

(a) Official fees and taxes;

(b) Charges for insurance as described in subsection (3) of this section;

(c) Annual charges, payable in advance, for the privilege of using a credit card or similar arrangement;

(c.5) Charges for debt cancellation contracts or debt suspension contracts offered in compliance with 12 CFR 37 or 12 CFR 721 or other federal law;

(c.7) Charges for guaranteed asset protection agreements, as defined in section 5-9.3-101 (4), offered in compliance with article 9.3 of this title 5;

(d) Charges for other benefits conferred on the consumer, including insurance, if the benefits are of value to the consumer and if the charges are reasonable in relation to the benefits, are of a type that is not for credit, and are authorized as permissible additional charges by rule adopted by the administrator;

(e) The following charges if agreed to by the parties:

(I) A charge, not to exceed the greater of two dollars or two and one-half percent of the amount advanced, for each cash advance transaction made pursuant to a credit card; and

(II) A fee, not to exceed twenty-five dollars, assessed upon return or dishonor of a check or other instrument tendered as payment.

(2) No finance charge may be assessed on any charge listed in paragraph (e) of subsection (1) of this section.

(3) An additional charge may be made for insurance written in connection with the transaction, other than insurance protecting the creditor against the consumer's default or other credit loss, if:

(a) With respect to insurance against loss of or damage to property or against liability, the creditor furnishes a clear and specific statement in writing to the consumer setting forth the cost of the insurance if obtained from or through the creditor and stating that the consumer may choose the person through whom the insurance is to be obtained; and

(b) With respect to consumer credit insurance providing life, accident, or health coverage, the insurance coverage is not a factor in the approval by the creditor of the extension of credit and this fact is clearly disclosed in writing to the consumer and if, in order to obtain the insurance in connection with the extension of credit, the consumer gives specific affirmative written indication of the consumer's desire to do so after written disclosure to the consumer of the cost thereof.

(4) With respect to a debt secured by an interest in land, bona fide and reasonable closing costs described in section 5-1-301 (8) are additional charges.

Source: L. 2000: Entire article R&RE, p. 1197, § 1, effective July 1. L. 2002: (1)(b) amended, p. 1012, § 2, effective June 1. L. 2009: IP(1) amended, (HB 09-1141), ch. 41, p. 157, § 2, effective July 1. L. 2023: IP(1) amended and (1)(c.5) and (1)(c.7) added, (HB 23-1181), ch. 425, p. 2497, § 2, effective January 1, 2024. L. 2024: (1)(c.7) amended, (HB 24-1450), ch. 490, p. 3405, § 9, effective August 7.

Editor's note: This section is similar to former § 5-2-202, as it existed prior to 2000.

Cross references: For the legislative declaration in HB 23-1181, see section 1 of chapter 425, Session Laws of Colorado 2023.

ANNOTATION

National Bank Act preempts this section to the extent that an out-of-state national bank may "export" a favorable interest rate from the state in which it is located. Copeland v. MBNA Am., N.A., 883 P.2d 564 (Colo. App. 1994) (decided prior to 2000 repeal and reenactment).

Applied in Empire Sav., Bldg. & Loan Ass'n v. Otero Sav. & Loan Ass'n, 640 P.2d 1151 (Colo. 1982) (decided prior to 2000 repeal and reenactment).