The Colorado state legislature yesterday introduced a series of bills aimed at helping individuals in that state get through the coronavirus pandemic, including a bill that would establish a 180-day moratorium on what the bill defines as “extraordinary debt collection actions.”
A copy of SB20-211, which was introduced by Sen. Faith Winter and Sen. Julie Gonzalez can be accessed by clicking here.
The bill was one of 15 that were introduced yesterday, which propose everything from ensuring paid sick leave and relief funds to help individuals pay their mortgages and utilities to expanding access to make more people eligible to qualify to receive unemployment insurance.
“We are working to pass legislation that directly supports families and small businesses, helps Coloradans get back to work safely and protects the health and safety of our communities,” said Speaker KC Becker, in a published report. “Coloradans are looking to us for leadership and how we will help them rebuild their lives. These bills provide direct support to help hardworking Coloradans afford to stay in their homes, pay their bills and make ends meet.”
The debt collection bill would prohibit any extraordinary collection action from being taken, which the bill defines as a garnishment, attachment, levy, or execution to collect or enforce a judgment on a debt as defined under the state’s Fair Debt Collection Practices Act. The prohibition could also be extended for another 180 days at the discretion of the state administrator of the its Uniform Consumer Credit Code.
The bill would also amend the items and amount of wages that would be exempt from garnishment, giving individuals more protections.