Colorado AG Issues Guidance Related to Collection Agencies Working Remotely

The Colorado Attorney General’s Consumer Credit Unit last week published new guidance related to the enactment of a law governing remote work for licensed lenders while also noting that the guidance originally enacted at the start of the pandemic in 2020 remains in effect for entities not covered by the new law, including collection agencies, debt management providers, and student loan servicers. The guidance for organizations not covered by the new law will remain in effect until May 2023.

A copy of the guidance is available by clicking here.

The state said it will not take any administrative, disciplinary, or enforcement actions for individuals working at home in what are technically unlicensed branches as long as the following criteria are met:

  • The Colorado activity is conducted from the home location of an individual working on behalf of an entity who is licensed, registered, or files notification with the Administrator;
  • The individual is working from home due to a reason connected to the COVID-19 outbreak and has informed the regulated entity in writing;
  • None of the Colorado activity will be conducted in person with members of the public at the home location;
  • Individuals working from home will not advertise, receive official mail directly, or permanently store any books or records at their remote location;
  • The Colorado licensee shall at all times exercise reasonable supervision of the licensable activity being performed at the home office and ensure sufficient safeguards to protect consumer information and data security; and
  • The individual ceases conducting the activity from the home location as soon as reasonably possible, consistent with recommendations from the CDC, CDPHE, and applicable state health departments

The guidance also stated that the AG’s office will not take any administrative, disciplinary, or enforcement action against a collection agency for imposing “reasonable protections” from the Centers for Disease Control and the Colorado Department of Public Health and the Environment (CDPHE) with respect to accepting payments.

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