The bill makes the following actions by a debt collector or
collection agency that is subject to the Colorado Fair Debt Collection Practices Act unfair or deceptive trade practices under the Colorado Consumer Protection Act (consumer protection act):
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Taking any legal action on a debt against a consumer if the debt collector or collection agency is the named plaintiff unless the debt collector or collection agency has purchased complete ownership of the debt, without any ownership interest retained by the seller, original creditor, or other third party; and
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Seeking or supporting a warrant or otherwise promoting the arrest or detainment of a consumer, including on motions related to discovery or contempt of court, in any legal action against the consumer in connection with an action to collect or attempt to collect a debt.
A creditor that is owed a consumer debt and seeks or supports a
warrant or otherwise promotes the arrest or detainment of a consumer in any legal action against the consumer in connection with an action to collect or attempt to collect the debt commits a deceptive trade practice under the consumer protection act.
The bill requires credit services organizations to file notification
with and pay a fee to the administrator of the uniform consumer credit code (administrator) within 30 days after commencing business in Colorado and, thereafter, on or before July 1 of each year.
The administrator may order a person to cease and desist from
engaging in violations of the Colorado Credit Services Organization Act (CCSOA). An order issued by the administrator may require the person to pay to a buyer a refund of unlawful charges under the CCSOA charged to the buyer and to pay an administrative penalty of up to $1,500 per violation. A person aggrieved by an order of the administrator may seek judicial review of the order in the Colorado court of appeals.
The bill clarifies that a plan that a debt management services
provider prepares for an individual to make regular, periodic payments must meet the definition of plan in the Uniform Debt-Management Services Act.
The bill also clarifies that if a debt management services provider
utilizes the internet or other electronic means to meet specific compliance requirements, including disclosures, reporting requirements, and record-keeping requirements, the provider must obtain a consumer's consent at the time of satisfying the requirements.
The bill repeals provisions outlining the fees a debt management
services provider may charge and requires the administrator to adopt rules specifying the nature and amount of permitted fees.
