HB24-1148: Consumer Lending Finance Charge Modifications

• Amends Colorado's Uniform Consumer Credit Code to create separate finance charge limits for nondepository institutions (supervised lenders/sellers that are not financial organizations) in consumer credit transactions.

• Establishes tiered interest rate caps for nondepository institutions: 36% per year on amounts up to $1,000, 21% per year on $1,000-$3,000, and 15% per year on amounts exceeding $3,000, or alternatively 21% flat rate on unpaid balances.

• Requires nondepository institutions to subtract the total cost of additional charges (insurance, debt cancellation contracts, guaranteed asset protection agreements, and other benefits) from the calculated finance charge to reflect more accurate credit costs.

• Repeals prior provisions allowing separate charges for debt cancellation contracts, debt suspension contracts, and guaranteed asset protection agreements, consolidating them into the finance charge calculation for nondepository institutions.

• Takes effect 90 days after the 2024 legislative session concludes, subject to voter approval in the November 2024 general election if a referendum petition is filed.