Medical Debt Collection Overhaul Being Floated in Colorado as Gov. Signs Bill Extending Halt on ‘Extraordinary’ Actions

The following alert and update about legislative activity in Colorado was provided to yesterday by Makyla Moody, with Greenberg Sada & Moody PC, in Englewood, Colo.

The Colorado Center on Law and Policy (CCLP) is currently working on a Bill to “reform” medical debt collections in Colorado. Based upon the limited information the industry has been able to gather, it appears that this new legislative effort may seek to amend the Colorado Fair Debt Collection Practices Act (CRS 5-616-101 et seq.) and potentially imposes potentially onerous charity requirements on medical service providers. Unfortunately, the exact scope and breadth of this anticipated legislation remains unknown, as CCLP has not yet shared many details concerning this legislation with any opposition stakeholders. The local industry will continue to monitor the situation, but we do not expect to be given much information until after the Bill has been drafted and CCLP and other common-minded stakeholders have already begun their lobbying campaigns. We will need as much support as we can muster, and are desperately seeking medical service providers and other creditors to aid in our fight against this anticipated legislation.

Moody also noted that Colorado Gov. Jared Polis signed SB21-002 into law yesterday, which extends the moratorium on “extraordinary” collection actions until June 1. The limitations currently were set to expire on February 1. An extraordinary collection action is defined as an action in the nature of 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.

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