Title Loans in Colorado

When Colorado voters were asked about payday loan costs in 2018, roughly three in four backed a 36% cap, and the state’s consumer credit code already pointed in the same direction. If you’re researching title loans in Colorado, the most important thing to know is that no special law lets lenders charge the triple-digit rates title loans carry elsewhere. In this guide from Auto Cash Title Loans, we explain what the Colorado Uniform Consumer Credit Code (UCCC) allows, how the Attorney General has treated illegal title lending, and what safer options exist.

Are title loans legal in Colorado?

Only in a limited, low-cost form. Colorado does not have a title-loan statute. A loan secured by your car is treated like any other consumer loan under the UCCC. Under C.R.S. 5-2-201, a lender without a supervised lender license may charge no more than 12% per year, and licensed supervised lenders are held to tiered caps that top out at 36% a year on the smallest portion of the balance.

That means a traditional single-payment title loan priced at 200% or 300% APR cannot be made lawfully to Colorado consumers. We classify Colorado as restricted: vehicle-secured loans exist, but only within the UCCC’s limits.

The governing law: the Colorado UCCC

The Colorado Attorney General administers the UCCC through its Consumer Credit Unit, which licenses and oversees nonbank lenders and investigates complaints. The key rules for anyone thinking about borrowing against a car are:

• License required above 12%: consumer loans with a finance charge above 12% a year are “supervised loans,” and the lender needs a Colorado Supervised Lender license. Banks and other depository institutions are exempt from that license.
• Tiered rate caps: as written in C.R.S. 5-2-201, supervised lenders may charge the greater of 21% a year on the whole balance or a blended rate of 36% on the first $1,000, 21% on the next portion up to $3,000, and 15% above that. Dollar thresholds in the UCCC can be adjusted over time, so confirm current figures with the Attorney General.
• Smaller loans: for loans of $1,000 or less, supervised lenders may use certain “alternative charges” instead of the standard finance charge under C.R.S. 5-2-214. Those rules were revised by House Bill 23-1229. Ask any lender to show you the full APR in writing.
• Payday cap: in November 2018 voters approved Proposition 111, which limited payday loans to 36% a year starting February 1, 2019.

Why title lenders don’t operate here

Few legitimate title loans in Colorado exist for a simple reason. Title lending depends on high monthly fees. Under Colorado’s caps, the margin isn’t there, so you generally won’t find licensed storefront title lenders in the state. When high-cost title loans do appear, they tend to come from operators who skip the license entirely.

The Attorney General has acted against exactly that. In 2016, the office obtained a court judgment against affiliated lenders that allegedly ran an illegal auto title loan operation under fictitious names, charging rates that sometimes exceeded 300% APR. The court ordered restitution, penalties and the release of more than 400 title liens, and some borrowers had already lost their vehicles to repossession.

Legitimate alternatives in Colorado

Before you put your car at risk, compare these options. Our guide to title loan alternatives has more detail.

• Credit union Payday Alternative Loans (PALs): federal credit unions may offer PALs from $200 to $2,000 with APRs capped at 28% and an application fee of no more than $20.
• Licensed installment lenders: supervised lenders can offer personal loans within the UCCC caps. Look up the license with the Attorney General before signing.
• Vehicle-secured loans from banks or credit unions: if you want to use your car as collateral, a regulated lender will usually offer a much lower rate and longer term.
• Local help: 211 Colorado, county human services offices and energy assistance programs can sometimes cover rent, utilities or car repairs directly.

See how a credit union loan compares with a title loan on total cost.

How to spot illegal or out-of-state title lenders

An online lender offering Coloradans a fast car title loan should be treated with caution. Red flags include:

• No Colorado Supervised Lender license, or a license number that doesn’t match the company name.
• An APR well above 36%, or fees described only as a monthly percentage.
• Requests to mail your title, hand over a spare key or install a GPS kill switch before you see the terms.
• Claims that tribal, offshore or another state’s law overrides Colorado’s.
• Unclear lender names, or a company using several different business names.

Our article on how to spot title loan scams covers more warning signs. If you’ve already borrowed, review your borrower rights and contact the Attorney General’s Consumer Credit Unit. Colorado borrowers living near the state line should also know that rules differ next door; see how Wyoming handles title loans.

Title loans in Colorado’s major cities

The Colorado UCCC is state law, so the 12% limit for unlicensed lenders and the supervised-lender caps described above are identical in Denver, Colorado Springs and Pueblo. No Colorado city licenses title lenders or allows higher rates. The practical question in every city is the same: does the lender hold a Colorado Supervised Lender license, and does the APR stay within the UCCC?

• Denver: The Attorney General’s Consumer Credit Unit, which licenses supervised lenders and takes complaints, is part of the Colorado Department of Law in Denver. Check any lender’s license there before handing over your title.
• Colorado Springs: Fort Carson, Peterson and Schriever Space Force Bases and the U.S. Air Force Academy make this a large military community. The federal Military Lending Act caps covered credit, including vehicle title loans, at a 36% military APR for active-duty service members and their dependents, on top of Colorado’s own limits.
• Aurora: Buckley Space Force Base is in Aurora, so the same military protections apply to many households. See our Aurora title loan guide for local options.
• Fort Collins: Northern Colorado is close to the Wyoming line, and Wyoming sets its own consumer loan limits (see our Wyoming guide). Our Fort Collins page covers local alternatives.
• Greeley and Loveland: Online ads promising Colorado title loans with “no store visit” reach these cities too. A lender quoting a monthly fee instead of an APR is a red flag. Read our Greeley and Loveland guides for nearby options.
• Pueblo: If you’re asking how title loans work in Colorado, the answer is the same in Pueblo as in Denver. A car-secured loan is an ordinary consumer loan under the UCCC. Our Pueblo guide lists local alternatives.

Frequently asked questions

What is the maximum APR on a consumer loan in Colorado?

It depends on the lender and loan size. Unlicensed lenders are limited to 12% a year. Supervised lenders follow the tiered caps in C.R.S. 5-2-201, and small loans of $1,000 or less may carry alternative charges under C.R.S. 5-2-214. Ask for the APR disclosure required by federal Truth in Lending rules.

Can I get an online title loan in Colorado?

A lender offering high-rate title loans to Colorado residents without a supervised lender license is likely violating the UCCC. Check the lender’s license with the Attorney General before you share your title or bank details.

Did Proposition 111 ban title loans?

Proposition 111 targeted payday loans, capping them at 36% a year from February 2019. Title loans were already limited by the UCCC’s general rate caps.

What happens if an unlicensed lender repossesses my car?

Keep all paperwork and file a complaint with the Consumer Credit Unit right away. In past enforcement actions, the Attorney General has secured restitution and the release of title liens for affected borrowers. An attorney can advise on your specific situation.

Who regulates lenders in Colorado?

The Colorado Attorney General’s Consumer Credit Unit administers the UCCC, licenses supervised lenders, and takes consumer complaints.

Sources

• Colorado Attorney General: Consumer Credit Unit
• Colorado Attorney General: UCCC Licensing & Notification
• Colorado General Assembly: HB 23-1229 (signed act)
• www.fdic.gov

Last reviewed: October 2026.