What does a $1,500 tribal loan at 650% APR cost over 6 months?

In our 6-month example of 13 biweekly payments at 650% APR, you pay $397 every two weeks, totaling $5,159 repaid and $3,659 in interest.

How much does a $1,500 credit union PAL cost in Denver?

A 12-month $1,500 NCUA PAL costs $145 per month and $257 in total cost including a $20 application fee, saving $3,402 compared to the tribal loan example.

$1,500 Tribal Loans in Denver, CO

Q: Are payday loans above 36% APR legal in Denver, CO?

No. Colorado Proposition 111 (2018) capped payday loans at 36% APR, and a $2,000 installment loan is capped at 31% APR under the Colorado Uniform Consumer Credit Code.

Online tribal lenders market $1,500 loans to Denver residents at triple-digit rates that conflict with Colorado law, where Proposition 111 caps payday loans at 36% APR and a $2,000 installment loan is capped at 31% APR. An example $1,500 tribal loan at 650% APR costs $5,159 in total payments over 6 months.

Are $1,500 tribal loans legal in Denver?

Colorado voters passed Proposition 111 (2018), which capped payday loans at 36% APR and effectively ended high-cost payday lending, and the Colorado Uniform Consumer Credit Code caps installment loan rates. Our state data lists the CO Div. of Banking as the regulator. Online tribal lenders operate without a Colorado license by claiming tribal sovereign immunity to charge triple-digit rates over the internet. Federal appeals courts have reached different results on tribal immunity: the 2nd Circuit (2014 and 2019), 4th Circuit (2021), and 7th Circuit (2021) backed state regulators and the CFPB, while a 2019 4th Circuit decision found one lender immune.

In Denver—where 1,108,441 residents have a U.S. Census Bureau median household income of $91,058 and a median rent of $1,766—taking on a 650% APR loan for a $1,500 rent or car repair bill creates a severe debt trap. Denver has 23 state-licensed loan offices operated by 8 loan companies, 37 pawn shops, and 5 credit unions headquartered in the city. Check the facts box on this page and our Colorado and Denver pages for regulated local choices. Your CU Partner is not a lender or broker and does not make loan decisions.

Step by step: how to verify a lender and protect yourself in Denver

Use these steps to avoid unlicensed triple-digit websites or to regain control of your checking account if you already have a tribal loan.

Verify licensing before you apply. Search nmlsconsumeraccess.org or check with Colorado regulators to confirm the lender is licensed in Colorado and follows Colorado rate caps.
Read the Truth in Lending disclosures and arbitration terms. Under federal Regulation Z, review the APR, finance charge, amount financed ($1,500), and total of payments, and check whether the contract claims exclusive tribal law and waives Colorado protections.
Use Regulation E to stop recurring bank debits. If you already hold a tribal loan with biweekly withdrawals you cannot afford, federal Regulation E allows you to stop preauthorized recurring electronic debits by telling your bank at least 3 business days before the scheduled date (stopping the debit does not cancel the debt).
Send written ACH revocation to the lender and your bank. Provide written notice to the lender revoking permission for electronic debits and file a stop-payment or ACH block instruction with your bank.
Report unlawful rate charges or threats. You cannot be arrested or jailed for an unpaid consumer loan; file a complaint with Colorado regulators and the CFPB at consumerfinance.gov if an unlicensed lender pursues unlawful charges.

What a $1,500 tribal loan really costs

Look at an example of a $1,500 tribal loan at 650% APR with 13 biweekly payments over 6 months: you pay $397 every two weeks, your total repaid is $5,159, and your total interest charge is $3,659.

In simple math, paying $397 thirteen times equals roughly $5,159—meaning you pay back your $1,500 principal plus $3,659 in interest alone in just six months.

Cheaper or safer options in Denver

Borrowers in Denver can save more than $3,400 by using a local credit union or a state-licensed Colorado installment lender.

Credit union PAL ($257 total cost over 12 months). Denver has 5 headquartered credit unions plus regional credit union branches. Under NCUA rules, a $1,500 PAL repaid over 12 months at a maximum 28% APR carries a $145 monthly payment and a total cost of $257 including a $20 application fee—saving you $3,402 compared to the $3,659 tribal interest example.
Colorado Uniform Consumer Credit Code installment loan. At Denver's 23 state-licensed loan offices, max APRs under the Colorado UCCC are 72% for a $500 loan (where an 8% acquisition charge is permitted only under the alternative small-loan structure in § 5-2-214), 31% for a $2,000 loan, and 21% for a $10,000 loan.
Federal credit union personal loan at 18% APR. Many federal credit unions cap standard personal installment loans at 18% APR, offering another low-cost alternative for $1,500.

Consumer lending rules to know in Colorado

Colorado Proposition 111 (2018) caps deferred deposit and payday loans at 36% APR, and the Colorado Uniform Consumer Credit Code governs multi-month consumer installment loans. Borrowers must be at least 18 years old.

Active-duty military personnel and their dependents are also protected by a 36% Military APR cap under the federal Military Lending Act. You cannot be arrested or jailed for an unpaid consumer debt in Colorado. Always check lender credentials at nmlsconsumeraccess.org and report violations to Colorado regulators or the CFPB at consumerfinance.gov.