First Regular Session
               Seventieth General Assembly
                    STATE OF COLORADO
                                                 INTRODUCED
                                                           
                                                           
 LLS NO. 15-0511.01 Jennifer Berman x3286SENATE BILL 15-034
                   SENATE SPONSORSHIP
 Ulibarri, 
 
                    HOUSE SPONSORSHIP
 Lebsock, 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Senate Committees
 House Committees
 
 
 Business, Labor, & Technology
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                         A BILL FOR AN ACT
       Concerning a reduction in the maximum permissible finance
            charge that a creditor may apply to a credit card.
       
       
                           Bill Summary
       
            (Note:  This summary applies to this bill as introduced and does
       not reflect any amendments that may be subsequently adopted. If this bill
       passes third reading in the house of introduction, a bill summary that
       applies to the reengrossed version of this bill will be available at
       http://www.leg.state.co.us/billsummaries.)
       
            Under current law, the maximum permissible finance charge that
       a lender or seller may impose on a supervised loan or consumer credit
       sale pursuant to a revolving credit account, including a credit card
       transaction, is 21% per year on the unpaid balance of the amount
       financed. The bill reduces the maximum permissible finance charge to
       12.5% per year on the unpaid balance of the amount financed for a credit
       card.
       
       
       
       Be it enacted by the General Assembly of the State of Colorado:
            SECTION 1.  In Colorado Revised Statutes, 5-2-201, amend (3)
       (a) as follows:
            5-2-201.  Finance charge for consumer credit transactions.
       (3) (a)  Except as provided in paragraph (b) of this subsection (3), the
       finance charge for a supervised loan or consumer credit sale pursuant to
       a revolving credit account, calculated according to the actuarial method,
       may must not exceed twenty-one percent per year on the unpaid balance
       of the amount financed; except that the finance charge for a credit
       card must not exceed twelve and one-half percent per year on
       the unpaid balance of the amount financed.
            SECTION 2.  Act subject to petition - effective date -
       applicability. (1)  This act takes effect at 12:01 a.m. on the day following
       the expiration of the ninety-day period after final adjournment of the
       general assembly (August 5, 2015, if adjournment sine die is on May 6,
       2015); except that, if a referendum petition is filed pursuant to section 1
       (3) of article V of the state constitution against this act or an item, section,
       or part of this act within such period, then the act, item, section, or part
       will not take effect unless approved by the people at the general election
       to be held in November 2016 and, in such case, will take effect on the
       date of the official declaration of the vote thereon by the governor.
            (2)  This act applies to consumer loan and consumer credit sale
       transactions made pursuant to a revolving credit account that take place
       on or after the applicable effective date of this act.