| Notice Filed with SOS |
07/14/2023 |
| Rule |
ProposedRuleAttach2023-00392.pdf |
| Additional Information |
AddInfoAttach2023-00392.pdf |
| Statutory Authority |
rulemaking authority C.R.S. §§ 5-6-104(1)(e) and (2)
disclosures C.R.S. § 5-3-101
max. finance charges C.R.S. § 5-2-201
prepayments C.R.S. § 5-2-210
rebates C.R.S. § 5-2-211
licensure C.R.S. § 5-2-301 and § 5-20-106(2)
false, misleading, or deceptive statements C.R.S. § 5-3-11
assignment of earnings C.R.S. § 5-3-206
notification by credit sellers C.R.S. § 5-6-201
record-keeping C.R.S. § 5-2-304 |
| Description of Subjects/Issues |
For income share agreements made in this state, as provided in C.R.S. § 5-1-201, the following rules apply. |
| Purpose/Objective of Rule |
The Administrator adopted this rule to protect and inform consumers of income share agreements (ISAs). This rule makes clear that ISAs are loans. As such, ISAs are consumer loans subject to the UCCC when they meet all of the other criteria set forth in C.R.S. § 5-1-301(15)(a). These regulations include the requirement to comply with statutory interest rate maximums and to provide rebates to avoid prepayment penalties. For the same reasons, ISA lenders must comply with all licensing requirements established in the UCCC and in the Student Loan Equity Act (SLEA), where applicable.
In addition, the rule requires that ISAs be presented to consumers with a disclosure that clearly states the terms of the loan. This disclosure effectively communicates the unique features of ISAs, specifically that the qualified payment amount will fluctuate with the consumers income, and the impact that those features will have on the consumer. This initial disclosure is supplemented with an annual disclosure and a disclosure required whenever the qualifying payment amount changes. |
| Basis And Purpose |
BasisAndPurposeAttachment2023-00392.pdf
|
| Regulatory analysis |
RegulatoryAnalysisAttachment2023-00392.pdf
|
| Comments |
The proposed rule, sample disclosure, statement of basis and purpose, and detailed notice are available on the Colorado Department of Law website at:
https://coag.gov/office-sections/consumer-protection/consumer-credit-unit/uniform-consumer-credit-code/ |
| Submitted in response to issues raised by COLS/OLLS? |
No
|
| Is this rule adopted in response to recent legislation? |
No
|
| Hearing Date |
08/25/2023 |
| Hearing Time |
09:00 AM |
| Hearing Location |
1300 Broadway, Denver Co 80203 room 1B and online via Zoom |
| Contact Name |
Hanah Harris |
| Contact Title |
Assistant Attorney General |
| Contact Telephone |
720-508-6237 |
| Contact email |
Hanah.Harris@coag.gov |