Some lenders have used concerning tactics in Colorado, and it’s just not right. A 2022 report by the Center for Responsible Lending found several instances of Colorado consumers purchasing multiple insurance policies when borrowing. In one egregious example, Lendmark, a consumer lending company, added $5,000 of insurance premiums to a $10,000 loan. Had the lender included the cost of those premiums in the APR, it would have more than doubled to 47%, which exceeds Colorado’s legal interest rate limits on consumer loans.
