The administrator of the Colorado Fair Debt Collection Practices Act — the state law in Colorado governing debt collection practices — has scheduled a virtual meeting for later this month aimed at “amending and clarifying” the rules and soliciting new topic for rulemaking.
Among the changes being proposed are:
- Requiring licensed collection agencies to maintain call recordings for two years in formats that can be accessed by the administrator.
- Giving collection agencies 14 days — instead of 10 business days — to provide consumers with written statements or receipts that the debt has been paid or settled in full.
- Giving collectors a $10 cushion — up from $5 — for which it has to issue a refund if an individual overpays the amount due on a debt.
- Giving collection agencies seven days — up from five — to provide receipts when payments are made in cash.
- Giving collection agencies 14 days — up from 10 — to provide payment statements to individuals, when requested. If requested more than once during a 12-month period, collection agencies can now charge $10, up from $5.
- Requiring collection agencies to fully refund payments within 35 days — up from 30 — when a payment is made but the agency is not able to identify the underlying client account.
Colorado recently enacted a bill that established a moratorium through Nov. 1 on what the law defines as “extraordinary” collection activities while also expanding the amount of property and assets that can be garnished or seized to repay unpaid debts.