Colorado Legislature To Hold Hearing on Extending Its FDCPA

The Colorado legislature is considering a bill that would extend that state’s Fair Debt Collection Practices Act for another 11 years, avoiding the expiration of the law, which is set to occur on July 1, 2017.

A hearing on the proposed legislation has been scheduled for next Monday, April 3.

The bill would also:

  • Define what is expected of a collection agency that purchases, sells, or attempts to collect on a purchased debt;
  • Clarify that when a collection agency attempts to collect on a debt, the Act applies, by removing language from the definition of “debt”;
  • Clarify that the statute of limitations for private actions and actions by the administrator of the Act is 4 years;
  • Repeal the collection agency board; and
  • Allow consumers who have monetary judgments against a collection agency to access surety bond funds

The bill would also set the statute of limitations on debts at four years, if enacted.

When selling debts, companies would have to:

  • Include in the transaction all relevant documentation, as determined by rule of the administrator, concerning the original transaction and the – creditor verifying the debt;
  • If a debt is under dispute and being sold, include documentation that the debt is under dispute and that the consumer may not be contacted unless verification of the debt is documented;
  • Not sell a retired debt as an account receivable.


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