Understanding the Colorado Fair Debt Collection Practices Act

The Colorado Fair Debt Collection Practices Act (CFDCPA) was reviewed as part of the sunset and sunrise review period by the Department of Regulatory Agency at the end of 2016.

The Senate Judiciary Committee for Colorado has introduced a bill to implement many of the recommendations from the review.

SB17-216, if passed, will include a number of key protections for consumers dealing with debt collection in Colorado. It includes extending the Act through 2028, defining the expectations for any collection agency that purchases, sells, or attempts collection on a debt, clarifying the statute of limitations for private actions of debt collection is four years, repealing the collection agency board, and allowing consumers access to surety bond funds when they have monetary judgments against a collection agency. The bill is currently under consideration in the Colorado State Senate and it is backed by a bipartisan group of legislators.

Know Your Debt Collection Rights

Consumers around the country have seen a rise in collection efforts with so-called “zombie debt.” This is basically any debt that cannot be legally collected. The debt might be too old, discharged or already paid, but it was sold to companies that still attempt to collect on it. The Denver Post recently reported that consumers ranked debt collection problems as their number one concern for the upcoming year.

Debt buyers generally purchase these accounts in bulk with little or no documentation. The old accounts can often be sold for pennies on the dollar. Even when the debts are over 10 years old and generally unenforceable, the debt collection companies can attempt to obtain default judgments against unsuspecting consumers. This can leave consumers feeling like they have no option, but to pay the judgment even if they have received no documentation of the original debt. It is best to speak with an experienced attorney that specializes in Colorado debt collection laws before agreeing to any settlement or paying a default judgment.

The proposed extension to the CFDCPA should come as good news to consumers with any debt collection issues and concerns. They keep in place many important protections for consumers in the state of Colorado that are dealing with a debt collector. Our firm will be able to explore all your options for debt resolution under the current and proposed legislation. If you are dealing with a collection effort on a debt that has not been documented or appears to fall outside the four-year statute of limitations under the proposed legislation, then our firm can help you put an end to constant hounding from those debt collectors as well.

Long & Long PC has more than 30 years of experience with debt resolution and bankruptcy in Colorado. Martin Long is a former Trustee for the U.S. Bankruptcy Court that has the expertise to assist with eliminating debt and navigating the complicated bankruptcy process, if needed, so that you can take back your life. Call us today at 303-832-2655 to schedule a free consultation and start the process to financial security.